Treasury Under Secretary Nellie Liang told House lawmakers the crypto industry wasn’t a central factor in the wipeouts of Silicon Valley Bank and Signature Bank.
Ric Edelman, founder of the Digital Assets Council of Financial Professionals, talks about a key reason why crypto’s future looks bleaker: an apparent effort to cut it off from U.S. banks.
FDIC chief Martin Gruenberg said a probe is underway as he and Fed Vice Chairman Michael Barr get set to tell U.S. senators what went on at Silicon Valley Bank, Signature Bank and Silvergate Bank.
The Federal Deposit Insurance Corp. also acquired equity appreciation rights in the parent of First Citizens Bank, which are potentially worth up to $500 million.
The biggest threat from the banking crisis triggered by this month’s collapse of Silicon Valley Bank might not lie in the potential for depositors to lose their savings but in the censorship power that massive banks are now accumulating as customers move their money.
The former Silicon Valley Bank holding company needs access to the bank's FDIC-controlled funds to pay creditors and support two other operations, says Kleinberg, Kaplan partner Dov Kleiner.