The Blockchain Association, a U.S.-based cryptocurrency advocacy group, has issued a warning to financial regulators regarding a potential “cryptocurrency company bank suspension” following the failures of signatories, Silicon Valley Bank and Silvergate Bank. asked to provide information.
In a notice dated March 16, the Blockchain Association Said Freedom of Information Act demands against the Federal Deposit Insurance Corporation, the Federal Reserve Board, and the Office of the Comptroller of the Currency for documents and communications that may indicate that the regulator’s actions “improperly contributed” submitted. Collapse of the Three Banks. According to Blockchain Association CEO Christine Smith, cryptocurrency companies “should be treated like any other law-abiding business” in the United States where they have access to bank accounts.
“BA is investigating troubling allegations, including account closures and refusals to open new accounts, which have raised concerns in the wake of this week’s banking crisis.” Said The association added, “A crisis in which long-term cryptocurrency opponents rushed to falsely blame the technology.”
1/ Today: I have sent a FOIA request to the following government agencies asking for information regarding the possible debanking of legitimate cryptocurrency businesses.
FDIC
Federal Reserve Board
and OCChttps://t.co/GdjNT6sWdU pic.twitter.com/vB4He5oQfY— Blockchain Association (@BlockchainAssn) March 16, 2023
For many in the space, the recent banking crisis began with Silvergate’s parent company announcing on March 8 that it would “scale back” its crypto banking. Silicon Valley Bank collapsed after his March 10th deposit scramble, and the Treasury Department, Fed, and FDIC announced the closure of the signing bank on March 12th.
At the time, a joint statement of regulators said the action against signing was taken to “protect the U.S. economy by strengthening public confidence in the banking system.” However, former U.S. Congressman and signing committee member Bernie Frank claimed the FDIC was sending a “strong anti-crypto message” in closing the banks, arguing that some Lawmakers want answers.
An FDIC spokesperson told Cointelegraph that the bidding process has begun for banks interested in acquiring Signature and Silicon Valley Bank. They suggested that recent reports that the FDIC asked potential buyers of bankrupt banks not to support crypto services may have been part of its “confidential marketing process.”
“The acquirer will tell the FDIC what assets and liabilities they are willing to receive from the failed bank, and what money (if any) they will have.” according to In the FDIC’s Handbook of Resolutions.
Related: U.S. Crypto Regulation Is Being Done “Behind the Scenes” — Blockchain Association CEO
Prior to its closure, Signature was considered by many to be the leading US crypto-friendly bank, serving Coinbase, Paxos Trust, BitGo and Celsius. Some in the field believe that perceived attacks by federal regulators on banks serving cryptocurrency firms may force firms to resort to “more dubious” options. suggesting.