Janet Yellen confirms Fed will revive crypto-friendly failed banks

US Treasury Secretary Janet Yellen confirmed the Fed will revive the US banks, which are struggling & possessing risk to the Bank depositors.

Janet Louise Yellen is a 77 years old American economist serving as the 78th United States secretary of the treasury since 26 Jan 2021. In the past, between 2014 to 2018, she served as the 15th chair of the Federal Reserve. 

Recently CNBC news reported that Treasury Secretary Yellen said the Federal Reserve (Fed) will save Signature Bank & Silicon Valley Bank, which recently failed to provide services to Bank depositors. 

Yellen said that the Fed is taking this action to ensure that Bank depositors will remain safe and it will help to maintain the trust of citizens in banking services but also said that the latest Fed decisions will not apply to future’ failed Banks. 

Banks’ bankruptcy & consequences over the Crypto sector

It is worth noting that the crypto-friendly US banks e.g Silvergate, Silicon Valley, and Signature Bank were providing services mainly to Venture capitalists (VCs), entrepreneurs & small tech companies for daily transactions. 

So here if any of the Bank or Fed will fail to compensate the customers then surely it will result in a very big downfall for future innovations in the US economy because big companies are already solving big problems but these startups companies are trying to solve practical level small problems to make life better.

As we know that the Crypto sector is also in its early phase and here if any crypto company will face problems with the banking sector, then surely it will result in a very big road bump in the path of crypto sector revolution.

Read also: BitGo successfully patched a critical vulnerability