NYDFS Sets The Record Straight On Signature Bank Closure And Crypto

Key Points:

• Signature Bank’s closure unrelated to crypto, due to “new-fashioned bank run”.
• Signature Bank and its Signet network relied on by several crypto companies and exchanges.
• Rumors that the bank’s crypto ties were the core issue were stoked by former US Representative Barney Frank.

According to a report from The Wall Street Journal on April 5, Adrienne A. Harris, Superintendent for the New York Department of Financial Services (NYDFS), stated that the closure of Signature Bank was due to a “new-fashioned bank run,” and had nothing to do with cryptocurrency.

Despite this, rumors have circulated that the bank’s ties to the crypto industry were the root cause of its closure. These rumors were fueled by former U.S. Representative Barney Frank, one of Signature’s board members.

However, NYDFS spokespersons have repeatedly denied any connection between Signature’s closure and the bank’s involvement in crypto-related activities. Other members of NYDFS also confirmed in March that the incident was not related to cryptocurrency.

It is worth noting that Signature Bank and its Signet network have been utilized by several prominent crypto companies and exchanges, including Coinbase, Kraken, and Binance. The closure of the bank has raised concerns about the potential impact on the crypto industry, and whether other banks may follow suit.

Signature Bank was initially closed on March 12, and there has been ongoing speculation about the cause of its closure. Despite the denials from NYDFS, many in the crypto community remain skeptical of the official explanation, and the situation continues to be closely monitored.

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Annie

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