Did the Federal Deposit Insurance Corporation (FDIC) ask Signature’s prospective buyers to divest crypto? FDIC’S spokesperson responds.
Reuters reported on March 15th that FDIC would require buyers of Signature Bank to give up on the crypto business at the bank.
However, FDIC has come out to deny the claims in the report. According to a Business Insider report, an FDIC spokesperson stated in a response email, “the receivership does not end until all the bank’s assets are sold, and all the claims against the bank are addressed, and the acquirer decides the conditions of their bid.”
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The spokesperson added that FDIC allows the buyers to decide the type of asset and liability they want to take from the collapsed bank. The spokesperson referenced FDIC’s resolution handbook.
The spokesperson also referenced two joint statements by FDIC and the Office of the Controller of the Currency claiming that they back the position. One of the statements says that banks are allowed to provide services to any sector. Forcing buyers to give up the cryptocurrency business will go against this statement.
Signature Bank was one of the major banks to wind down due to liquidity issues. FDIC seized control of the bank after the New York Financial Services ordered its closure. Other recently closed banks include Silvergate Bank and Silicon Valley Bank (SVB).
Some industry experts, including former Signature Board member Barney Frank, claimed that the move by the government to shut down these crypto-friendly banks is inspired by anti-cryptocurrency motives.
However, the New York Department of Financial Services (NYDFS) denied the claims, insisting that the measures have nothing to do with the cryptocurrency business.
