FDIC doesn’t want Signature Bank to divest its crypto activities: Report


The latest statement passed by the FDIC official confirmed that the agency doesn’t have any intention to ban Signature Bank from crypto activities. 

Signature Bank was a New York-based full-service commercial bank. This bank has 40 private client offices in the US states. Along with banking services, the Bank also provides private equity, mortgage servicing, and venture banking financing and investment services. In the crypto sector, this bank was famous because of its banking support for crypto companies.

Recently Signature was seized by the New York Department of Financial Services and turned over to the FDIC agency, citing bad financial position. In response, Signature board member Barney Frank claimed that all such actions were just a part of political matters where they are trying to keep the Crypto sector away from banking services. 

On 16 March 2023, a Reuters report claimed that two unnamed sources revealed that Signature Bank’s new owner will be forced to terminate the bank’s relationship with the crypto sector. 

“any buyer of Signature must agree to give up all the crypto business at the bank,” citing two unnamed sources

The FDIC agency responded against such reports and confirmed that the agency doesn’t have any intention against the crypto activities in the US and also there is no pressure on the future Signature Bank’s assets buyer to terminate Bank’s exposure from crypto companies but confirmed that Signature Bank acquirer may take independent action against Bank’s relationship with the crypto sector, CoinDesk news media confirmed.

Crypto, Banks & regulatory heat

Over the last few months, reportedly many crypto entrepreneurs said that they are failing to get banking partners for their crypto startups in the US citing regulatory pressure on the banks over their relationship with crypto companies.

In the present time, Binance.com exchange is big proof & a victim of US regulatory heat on US banks. For the last few weeks, Binance.com customers haven’t been able to deposit funds via bank wire transfer. 

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