Crypto-focused Signature Bank has been closed by regulators due to systemic risk. The bank had been under scrutiny by regulatory agencies for some time before the decision was made to shut it down. Signature Bank’s closure has heightened concerns about the risks facing the crypto industry, with many experts warning that regulators need to take a tougher stance on these issues.
The closure of Signature Bank has also impacted other financial institutions. US regulators have stated that Silicon Valley Bank (SVB) customers will be “made whole” after the bank failed. This is the second bank to collapse in recent years, leading to concerns about the overall stability of the banking sector.
Meanwhile, Barclays Frank has urged regulators to raise insurance limits on business deposits. He believes that increasing the limits would help to safeguard companies’ assets and protect them against the risk of bank failures.
In more positive news, Coinbase, Celsius, and Paxos have disclosed funds in Signature Bank. Despite the bank’s closure, it appears that these companies were able to withdraw their assets, indicating that some investors may have been able to recover their money.
The fallout from the closure of Signature Bank has caused some instability in the financial markets, with Bloomberg reporting that the Fed rate pivot is “back in play”. As investors continue to grapple with the aftermath of Signature Bank’s closure, financial regulators will need to work quickly to restore confidence in the banking sector and prevent similar collapses in the future.