Crypto-focused Signature Bank closed down by regulators citing systemic risk
New York-based Signature Bank, known for its focus on crypto businesses, has been closed down by regulators citing systemic risk. The bank had been facing increased scrutiny in recent months as regulators focused on banks heavily invested in cryptocurrencies. This is the second such closure in the US this week, following the closure of New York-based Second Bank, but US regulators have assured that customers impacted by the closures would be made whole.
Coinbase, Celsius, and Paxos disclose funds in Signature Bank
Despite the closure of Signature Bank, some major crypto firms have disclosed that they held funds in the bank. Coinbase, Celsius, and Paxos are among the firms to reveal that they have funds in Signature Bank. While it is not yet clear what impact the closure will have on these funds, it highlights the wider issue of regulatory scrutiny of crypto-focused banks.
Barney Frank calls for insurance limit on business deposits to be raised
Former US Congressman Barney Frank has called for the insurance limit on business deposits to be raised. Frank argued that the limit should be raised from $250,000 to $500,000 to protect small and medium-sized businesses from losses in the event of a bank closure. The call comes in the wake of the closures of Signature Bank and Second Bank.
SVB Fallout puts Fed Rate Pivot Back in Play
The fallout from the closures of Signature Bank and Second Bank has put the Federal Reserve’s pivot on interest rates back in play. The closures have raised concerns over systemic risk in the banking sector, which could impact interest rates. Market analysts are closely watching the Fed’s response to the closures and whether it will make any changes to its rate policies.
View Full Coverage on USNN
For the latest updates on the closures of Signature Bank and Second Bank, as well as ongoing regulatory scrutiny of crypto-focused banks, readers can check out the full coverage on USNN. The closures are seen as a major development in the crypto industry, highlighting the need for increased regulatory oversight and scrutiny of the risks associated with investment in cryptocurrencies.