Friday, June 9, 2023

Adrienne A. Harris, the leader of New York’s Department of Financial Services, denied rumors that Signature Bank was shut down because it did business with cryptocurrencies. Instead, she said that too much money in the bank wasn’t insured and there weren’t enough funds for it to stay open.

DFS Denies Signature Bank Closure is Aimed at Harming Crypto Industry

Adrienne A. Harris, the head of New York State’s Department of Financial Services (DFS), said that Signature Bank closed for a few reasons: it had too much money without insurance and not enough cash to give back to people who wanted their money out.

At a recent event hosted by Chainalysis (a blockchain analysis company), the department’s leader Harris denied that their shutting down of Signature Bank was part of any plan to hurt the crypto industry. She called it “ludicrous” to think Signature Bank closure had anything to do with cryptocurrencies.

Recently, CryptokenTop News reported that the U.S. financial regulator ‘DFS’ decided to close Signature Bank. Barney Frank, a board member and former politician who helped create the 2010 Dodd-Frank Act, argued that DFS made this decision because of its bad opinion on crypto currency. He also said that the closure was not due to any financial issues with Signature Bank.

Frank made a claim against the DFS (a regulator) but it was not accepted. People have started to suspect that the reason why the DFS took action against Signature Bank is because they want to hurt the crypto industry. People who think this are pointing out that Signature Bank is used by many crypto companies, as evidence of their suspicion.

Harris Challenges Crypto Industry to Uphold Law and Security Standards

Recently, Harris said that companies in theCryptocurrency industry are still not doing a great job at following rules set by laws like the Bank Secrecy Act and cybersecurity. She wishes that the cryptocurrency industry can become more mature and developed.

The Wall Street Journal said that the DFS (Department of Financial Services) is finishing rules to monitor cryptocurrency. The rules will make sure that laws in the crypto industry are that same as for banking and insurance. Harris mentioned fees will be paid by companies being checked, and this money will go back to DFS.

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Pictures: Shutterstock, Pixabay, and Wiki Commons.


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