FDIC Asked Signature Buyers To Give Up All Crypto Business
March 16, 2023
By: Ramsha Naushad
The FDIC regulators have asked banks interested in acquiring failed U.S. lenders like Silicon Valley Bank (SVB) and Signature Bank to submit bids by March 17, as per Reuters.
Now they have reportedly required any buyer of Signature to give up all cryptocurrency business at the bank and not to support any crypto services.
The authority will only accept bids from banks with an existing bank charter, prioritizing traditional lenders over private equity firms, says report.
Interestingly, Signature, a New York-based bank is among the major crypto-friendly bank in the United States, having multiple crypto partnerships.
The bank is known for many partnerships with servicing companies like Coinbase exchange, stablecoin issuer Paxos Trust, crypto custodian BitGo, bankrupt crypto lender Celsius, etc.
The news comes amid U.S. Representative Tom Emmer sending a letter to the FDIC, expressing concerns that the banking industry might go after crypto.
Barney Frank speculates that closing Signature despite no insolvency demonstrates force over the crypto industry and a “very strong anti-crypto message.”