Adrienne Harris, superintendent of the New York Department of Financial Services, or NYDFS, he reportedly said that the closure of the pro-crypto bank, Signature Bank, in mid-March had nothing to do with exposure to digital assets.
According to an April 5 story in The Wall Street Journal, Harris made the remarks at the Chainalysis Links conference in New York City. He reportedly described the events leading up to Signature’s bankruptcy as a “new-fashioned bank run,” dismissing any connection to crypto asset exposure as “ludicrous.”
Harris also reportedly took issue with the idea that the US government was actively working to limit certain industries’ access to US banking services in what many have dubbed “Operation Choke Point 2.0.” The original Operation Choke Point, carried out by the US Department of Justice between 2013 and 2017, targeted banks suspected of being exposed to companies potentially involved in fraud or money laundering.
Earlier today #NYDFS Superintendent Adrienne Harris joined CSO and co-founder @jony_levin to discuss the future of digital asset oversight and important developments in global financial regulation at @chainalysis #Links23 pic.twitter.com/7ie6HnDVRr
— NYDFS (@NYDFS) April 5, 2023
The NYDFS seized control of Signature Bank on March 12, claiming it was protecting the US economy from “system risk.” The bank was the latest bankruptcy after the collapse of Silvergate Bank and Silicon Valley Bank, both of which were pro-cryptocurrency institutions.
Former House member and Signature board member Barney Frank said there had been no problem with the bank’s solvency at the time of the intervention, suggesting that regulators were making an “anti-crypto message.” very strong”. Some lawmakers, including Colorado Sen. Michael Bennet, said Signature failed to make “prudently sound” decisions when partnering with crypto companies.
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