Martin Gruenberg, Chairman of the US Federal Deposit Insurance Corporation, has stated that the FDIC plans to return about $4 billion in deposits related to Signature Bank’s digital asset banking business in early April.
At a March 29 hearing in the US House Committee on Financial Services discussing federal regulators’ responses to recent bank failures, Gruenberg said deposits not included in a New York Community Bancorp subsidiary’s offer for Signature would return “early next week” approximately $4 billion tied to digital assets. Reports had suggested that the FDIC would close all cryptocurrency-related accounts that were not part of the NYCB settlement by April 5 if depositors did not move their funds.
According to Gruenberg, Signature’s Signet payments platform – which, along with digital asset depositories, was not included in the NYCB’s offer – was “in the process of being commercialized” to potential buyers. The FDIC, along with New York financial regulators, shut down the cryptocurrency bank on March 12, citing risks to the US economy following the failure of Silicon Valley Bank and Silvergate Bank.
Nellie Liang, Assistant Secretary for Domestic Finance of the United States Department of the Treasury, He said he did not believe cryptocurrencies “played a direct role” in the failure of Signature or Silicon Valley Bank:
Nellie Liang, Under Secretary for Domestic Finance at the US Department of the Treasury, said she did not believe crypto “played a direct role” in the failure of Signature or Silicon Valley Bank:
The March 29 hearing marked the second time that Liang, Gruenberg and Fed Vice Chairman of Supervision Michael Barr addressed lawmakers following the failure of three major US banks. The Senate Banking Committee held a hearing on March 28, at which Gruenberg said that Silvergate Bank had not adequately managed the risks that led to its failure.
Although some lawmakers and regulators have ostensibly pointed to the banks’ ties to digital asset companies, many have criticized the association as unsubstantiated. Barney Frank, former member of the House of Representatives and member of Signature’s board of directors, He reportedly said that the officials wanted to send a “very strong anti-crypto message”, claiming that the bank had no solvency problems at the time of its closure.
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