- The FDIC is allegedly preventing buyers of the failed signature bank from offering crypto services.
- Many see this as blaming the cryptocurrency industry for the collapse of banks, including US actor Tom Emmer.
- If crypto becomes a scapegoat for the failures of US banks, this will only increase the difficulties for crypto companies operating in the US.
In the wake of the US banking collapses that saw Silvergate, Signature and Silicon Valley Bank Whatever goes under Within days, some believed, cryptocurrency had become a scapegoat.
FDIC is Seek bids from other financial institutions to buy out failed lenders Silicon Valley Bank and Signature Bank. However, one of the caveats about Signature Bank’s purchase by the FDIC is that the crypto service will be discontinued.
for the representative of the United States Tom Emmer, a staunch supporter of cryptocurrency, is directly attacking the emerging financial sector. He took to Twitter to share a message sent to FDIC Chairman Martin Gruenberg.
Emmer says that “the FDIC is weaponizing recent instability in the banking sector to purge legal crypto activity from the US”
Today, I sent a letter to FDIC Chairman Gruenberg regarding reports that the FDIC is weaponizing recent instability in the banking sector to purge legal crypto activity from the US 👇 pic.twitter.com/fDmaA0XGWv
– Tom Emmer (GOPMajorityWhip) March 15, 2023
Eimer believes that cryptocurrency should not be a scapegoat for the nagging of a new banking crisis. Instead, he says:
“The recent instability in the banking sectors [was] catalyzed by catastrophic government spending and unprecedented interest rate hikes [these] are deeply inappropriate and could lead to broader financial instability.”
Undo the internet revolution
A lot of evidence has emerged that the US has become a hostile land for cryptocurrency and companies operating in this sector. The SEC has been hit hard by Ripple, Coinbase and Circle with the companies discipline regulator approach.
Moreover, the failure of three crypto-friendly banks will make things more complicated for crypto companies to operate in the space. The FDIC’s scapegoating of cryptocurrency also means that the future looks bleak for innovative technology in the US.
Cathy Wood, CEO and CIO of Ark Invest, also took to Twitter to join in Emmer’s attack on the US regulatory approach to Crypto.
wood He said“While the US banking system has been at a standstill in response to bank operations threatening regional banks, Bitcoin, Ethereum, and other crypto networks have not made it.”
Instead of banning decentralized, transparent, auditable financial platforms that function well with no central points of failure, regulators should have focused on the centralized and opaque points of failure that loom large in the traditional banking system.
– Cathy Wood (@CathieDWood) March 15, 2023
on the flip side
- While the banking and financial sector in the United States is going through a crisis, which affects the crypto business, the price of bitcoin has been affected Has risen increased by 15% in the past seven days.
Why should you bother
Let’s say the FDIC aims to crypto and make future cryptocurrency banking in the US difficult. In this case, companies that are currently in the US will face hostilities on three fronts – regulations, the lack of current banking options, and the ban on crypto banking options in the future.
Read more about crypto banking options in Europe:
US Banking Collapse: Cryptocurrency will be offered by HSBC, Santander and Deutsche Bank in Europe.
Read about how Binance is prioritizing TUSD over BUSD:
Binance’s new Flame TUSD secures fee-free BTC trading as BUSD takes the plunge.
