Reading time: ~2 m
The US Federal Deposit Insurance Corporation has denied a report that companies wishing to acquire a bankrupt bank will have to abandon the cryptocurrency part of the business.
The US Federal Deposit Insurance Corporation (FDIC) denied a Reuters report that a buyer of Signature Bank would have to stop working with cryptocurrency companies. On March 16, a news agency reported on a “crypto condition” for bidders to acquire a bankrupt bank, but the report was later supplemented by comments from the regulator.
The article originally stated, citing two unnamed sources, that “any purchaser of Signature must agree to forfeit the bank’s entire cryptocurrency business.” A spokesperson for the FDIC told the publication after the news was published that the agency would not demand a withdrawal from cryptocurrencies as part of any deal to sell the bank’s assets. He also pointed to previous comments by FDIC Chairman Martin Gruenberg that the agency is not seeking to ban any specific bank activity.
The closure of Signature Bank followed the collapse of Silvergate and Silicon Valley Bank (SVB). On March 12, U.S. regulators announced that Signature had come under their control after failing to provide “reliable and consistent data, creating a significant crisis of confidence in bank management.” Asset management of Signature Bank was transferred to the FDIC. The agency intends to sell the bank’s business in whole or in part, it accepts applications from interested companies until March 17.
At the end of September last year, almost a quarter of deposits in Signature accounted for the cryptocurrency sector. Following the closure of the bank, Signature board member Barney Frank stated that the authorities had “no real objective reason” for closing the bank, and the point of this move was to send people a “very strong anti-crypto signal.”
#Buyer #Signature #Bank #banned #working #crypto #business