The New York State Department of Financial Services said that their decision to shut down Signature Bank had nothing to do with crypto. The regulator explained that it happened because the bank is not safe or sound enough to continue doing business.
Is Cryptocurrency to Blame for Signature Bank’s Troubles?
On Sunday, the New York State Department of Financial Services (NYDFS) took control of Signature Bank. People are asking if the government’s intervention had anything to do with cryptocurrency.
Barney Frank, a former U.S. Representative who helped create the Dodd-Frank Act and was also a part of Signature Bank since 2015, said that he belives it does have something to do with crypto. He said this on CNBC Monday.
“People in charge of the law wanted to tell everyone that cryptocurrencies were bad.”
According to him (the person talking), Signature Bank was a good example of why people should not trust cryptocurrencies because the bank had no money problems based on it.
Last September, 25% of the money put into Signature Bank was from cryptocurrency investments but by December, the bank said it only wanted $8 billion from these crypto investments.
A spokesperson for the New York State Department of Financial Services said that closing Signature Bank had nothing to do with cryptocurrency. They took over the bank and gave it to the Federal Deposit Insurance Corporation because the bank was not able to conduct business safely on Monday.
Over the weekend, many people asked for their money back from Signature Bank but the bank was not able to provide the proper information. The NYDFS (New York Department of Financial Services) said that they have been allowing activities related to crypto-currency in a safe and controlled way for many years and are an example for the whole country on how it should be done.
Frank was very surprised when the New York state regulator said that their choice to take control of Signature Bank had nothing to do with cryptocurrencies. He said that, from what he knew, the bank’s officers were trying to show information to the regulators. Frank then added: “I think that cryptocurrency may have been a point… I am really confused as to why Signature Bank was shut down.”
According to our bosses, the bank situation is now ok and they will get money from one place. If the bank opened on Monday, it would go OK even without that money.
Do you think Signature Bank closed down because of Bitcoin or other cryptocurrencies? Write your thoughts in the comments section below.
The pictures you see here come from many different sources – like Shutterstock, Pixabay and Wiki Commons.