Friday, June 9, 2023

Adrienne A. Harris, the leader of New York’s Department of Financial Services, said that it was preposterous to think the closure of Signature Bank had anything to do with its crypto business. Harris mentioned that the bank had too many people’s money not backed up and not enough money in the bank, which were some of the reasons it closed down.

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Adrienne A. Harris, an important person of the New York State’s Department of Financial Services (DFS), has recently said that their regulator didn’t close Signature Bank because of its crypto banking business. The reason for closing Signature Bank was because it had a lot of money from people who were not insured, and it also did not have enough money to fulfil all the withdrawal requests.

At a recent event, the United States Comptroller of the Currency (OCC), Brian Brooks talked about how his department’s closure of Signature Bank wasn’t part of a plan to damage the crypto industry. He said it was “ludicrous” that anyone would think this was ‘Choke Point 2.0’.

CryptokenTop News had previously reported that the banking regulator in US, DFS, decided to close Signature Bank’s operations. A former American politician and one of Signature Bank’s board member named Barney Frank believed that the decision by DFS was taken as they have a negative view towards cryptocurrency. Moreover, Mr. Frank also argued that there was no financial difficulty behind shutting down the bank.

Frank gave a statement that was dismissed right away by the DFS, but even so, rumours still suggest they could be deliberately trying to ruin the crypto industry. People are pointing out how Signature Bank is considered the financial partner of many crypto companies in order to back up their claims.

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Harris just said that the industry still doesn’t have enough protective systems like Bank Secrecy Act-anti-money laundering and cybersecurity. She hopes that these safety programs will get better in the future and be able to keep up with how much the business side is growing.

The Wall Street Journal reported that the DFS is planning to finish its rules for monitoring the cryptocurrency industry. This new law will make sure the same regulations from banking and insurances sectors are being used on crypto operations. The DFS’s head, Harris, said all of the money earned from examining companies will be directed to their resources.

Do you have an opinion on this story? Let us know in the comments what your thoughts are.

The images we used for this post were taken from Shutterstock, Pixabay, and Wiki Commons.


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