New York regulator says Signature Bank closure ‘nothing to do’ with cryptocurrencies: Reuters

Timmy Shen

2 years ago

Signature Bank branch stands in Manhattan on March 13, 2023 in New York City. Image: Getty Images

The decision to shut down Signature Bank at the weekend was not related to cryptocurrencies, a spokesperson of the New York State Department of Financial Services (NYDFS) told Reuters on Tuesday.

Fast facts

The NYDFS said the lender had “a significant crisis of confidence in the bank’s leadership” and the closure was “based on the current status of the bank and its ability to do business in a safe and sound manner,” according to the report.
The authority’s statement came after former congressman Barney Frank, a Signature Bank board member, told CNBC that the closure was related to “regulators wanted to send a very strong anti-crypto message.”
On Sunday, the NYDFS said it had taken possession of Signature Bank “in order to protect depositors.”
The fall of Signature Bank followed the collapses of California-based and crypto-linked bank Silvergate Capital last week and the Sunday closure of Silicon Valley Bank, which at one point over the weekend caused Circle’s USDC stablecoin to lose its peg to the U.S. dollar.
In an interview with Forkast this week, Circle Chief Strategy Officer Dante Disparte said the recent U.S. banks fallout is a “stress test” for both traditional finance and digital assets, but “to weather the storm side by side is a powerful opportunity.”