All deals come with a bargain, and in the world of business, there is no such thing as freebies and charitable giveaways. Invoking such ideas, Reuters has published a new article that suggests that FDIC has conditioned the bailout offer for Signature bank with revoking their cryptocurrency ties.
This article has suggested that FDIC only intends to offer custodial insurance coverage to the Signature bank if its halts all business ties with its cryptocurrency clients.
However, the latest statement issued by FDIC officials has rejected this idea. These ideas have arrived under the assertion that the US government has played a passive role in the demise of three bank collapse to set an anti-crypto precedent.
However, the idea about the negative stance of the government towards cryptocurrency markets has been around for years, with investors like Ray Dalio predicting that government agencies may eventually come forward to block the development and growth of cryptocurrency entities.
In their latest article, the journalists from Reuters have also cited two anonymous sources to give strength to their assertions against FDIC. However, the spokesperson of FDIC has claimed that the receivership for Signature bank stands until the point when all its assets are sold, and claims against this bank are addressed.
The official of the regulatory authority also claimed that the terms of trade are dictated by the new buyer following the purchase contract.
FDIC mentioned that the new buyers of the Signature bank assets could choose to undertake any amount of liabilities and assets. During the statement, the FDIC spokesperson also quoted the resolution handbook of the agency.
At the same time, they reiterated the legal precedent set by the Office of the Comptroller of Currency and the Federal Reserve that regulated banks are not encouraged or prohibited to provide or keep services for any sector. Thus, FDIC has officially declared that there is no legal way that it can direct Signature bank to stop trading cryptocurrencies.
Is Signature Bank Failure a Political Move?
Barney Frank has recently joined the board of Signature bank. He recently issued a statement that asserted that the sealing of this bank by New York Financial Services is a political move.
He claimed that government agencies are preparing to set an anti-crypto stance in the financial markets. With such harsh moves, it seems that there is no room for unification between the crypto and traditional sectors.
A spokesperson from NYDFS has responded to the statement issued by Frank in a recent press release. They claimed that the decision to close the bank was taken when regulators lost their confidence in its ability to retain composure in the aftermath of a bank run.