Several allegations emerged this week that the Signature bank closure was an indirect attack on cryptocurrencies. The speeches of Barney Frank, famous for his handling of the 2008 crisis, were the most quoted by investors.
However, the New York Department of Financial Services has refuted such allegations, stating that the decision to close the bank did not target cryptocurrencies.
In addition to Signature, two other banks linked to the cryptocurrency sector closed their doors this month. The first of them, Silvergate, was already shocked by the bankruptcy of the FTX brokerage. Silicon Valley Bank (SVB) had strong ties to startups and venture capital funds.
What do the charges say?
As reported by live coins this Wednesday (14) both former Republican Barney Frank and some well-known names in the crypto sector claimed that Signature’s closure was arbitrary.
Under the data mentioned, Signature appears to be in better fiscal health than other banks.
So this would be the biggest proof that the US is waging a silent war against cryptocurrencies. After all, Signature served as a gateway for such investments, processing requests for withdrawals and deposits from clients of major US brokers.
US denies attack
Speaking to Fortune, a New York Department of Financial Services spokesperson stated that the decision had nothing to do with cryptocurrencies, but rather Signature Bank’s financial condition.
“Decisions made over the weekend had nothing to do with cryptocurrencies.”
“The decision to take ownership of the bank and transfer it to the FDIC was based on the bank’s current status and its ability to safely conduct business Monday.”a New York Department of Financial Services spokesperson told Fortune.
Finally, it’s worth noting that Barney Frank is a member of Signature, a bank shut down by the US. So while he is respected for his political background, his opinions can be biased.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
