FDIC Denies Report Buyers Signature Bank Must Stop Cryptocurrencies Services

Key Points:

• The FDIC has denied Reuters’ report that Signature Bank buyers must discontinue crypto services.
• The FDIC will have the right to take over until all the bank’s assets are sold, and all claims against the bank are resolved, and the buyers decide on their bidding conditions.
• Currently, this agency is still trying to find a way to sell Signature Bank prices.

The FDIC has officially denied requiring Signature Bank buyers to quit trading crypto-related services.

As previously updated, Reuter’s media outlet reported yesterday that the US FDIC is offering Signature Bank for sale on the condition that the buyers will have to waive all crypto-related services.

The spokesman of the FDIC has denied this information. The spokesperson also said the FDIC published two joint statements, the Office of the Comptroller of the Currency, and the Federal Reserve, one of which stated that banks were ‘neither prohibited nor encouraged’ from providing services to any industry.

The Signature Bank was seized by the New York Department of Financial Services last weekend and turned over to the FDIC. An NYDFS spokesman said the regulator had lost confidence in the bank’s management after a bank run last Friday and lacked reliable information.

The FDIC is now seeking to auction off Signature and Silicon Valley Bank – another central bank that state regulators seized on the same day.

A spokesman for the FDIC said it would have the right to take over until all of the bank’s assets are sold, all claims against the bank are resolved, and buyers decide on their bidding conditions.

The acquirer will tell the agency “what assets and liabilities from the failed bank they are willing to accept,” the spokesperson said, citing the agency’s resolution manual.

The banking crisis in the US is still happening. It has a significant impact on the stablecoin market, as many issuers are looking for new shelters for their reserves to avoid the risk of the crisis spreading.

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