A piece of new information emerging from the Federal Deposit Insurance Corporation (FDIC) side regarding the collapsed Signature bank. Those who are interested in acquiring the failed bank must have to agree on no crypto principles.
On 15 March FDIC asked interested players to bid for the two collapsed banks, the Signature bank, and the Silicon Valley Bank by Friday, 17 March. Companies that have any exposure in this field can apply for the bidding process.
Recently, the United States regulators faced worldwide criticism after the back-to-back collapses of three major banks, the Silvergate bank, the Silicon Valley Bank, and Signature bank. They all were liked by crypto traders for their crypto-friendly nature.
The Signature was the last among three that collapsed on Sunday, 12 March. The collapsed bank was considered very safe due to its crypto-friendly nature but now the bank is collapsed and is completely defunct. The bids for the defunct end today and it will be interesting to see which players have shown their interest in the bidding.
After analyzing the risk associated with crypto-friendly banks, the FDIC has decided to remove the crypto criteria from the bidding. It means no crypto business shall be performed by whoever wins the bidding process. The Signature bank was surrounded by controversies for a very long time when a lawsuit was filed against them in February alleging that the bank knew about the FTX fraud.
There are two fractions currently in the United States banking sector one is crypto and the other is anti-crypto. Barren Frank, a Signature bank member, alleged that the United States agencies clearly showed an anti-crypto stand. However, the Commodities Futures Trading Commission (CFTC) recently announced a Technical Advisory Committee (TAC) to build a secure environment for crypto management and also announced its chair and vice chair a few days back. So, it’s not worth saying that the United States agencies are anti-crypto.