Signature Bank was not shut down for crypto-related reasons, the New York Department of Financial Services has said, rejecting claims that the regulator took over the bank to send an “anti-crypto message.”
NYDFS took over Signature over the weekend (11/03/2023), reports Coindesk, turning it over to the Federal Deposit Insurance Corporation (FDIC). The move followed California’s own banking regulator seizing Silicon Valley Bank last Friday, and Silvergate Bank announcing it would voluntarily liquidate its assets last week. Signature, like Silvergate, served a number of crypto clients.
In a statement Tuesday (14/03/2023), an NYDFS spokesperson echoed comments from the regulator’s head, Superintendent Adrienne Harris, who said Monday that the bank closure was not due to its role with crypto companies.
Signature Bank was not shut down for crypto-related reasons, the New York Department of Financial Services said Tuesday, rejecting claims that the regulator took over the bank to send an “anti-crypto message.”
NYDFS took over Signature over the weekend, turning it over to the Federal Deposit Insurance Corporation (FDIC). The move followed California’s own banking regulator seizing Silicon Valley Bank last Friday, and Silvergate Bank announcing it would voluntarily liquidate its assets last week. Signature, like Silvergate, served a number of crypto clients.
In a statement Tuesday, an NYDFS spokesperson echoed comments from the regulator’s head, Superintendent Adrienne Harris, who said Monday that the bank closure was not due to its role with crypto companies.
“The decisions made over the weekend were not crypto related,” the spokesperson said. “Signature was a traditional commercial bank with a wide range of activities and customers, including small businesses like food vendors at Hunt’s Point, residential mortgage banking, commercial real estate, to name a few. DFS has been facilitating well-regulated crypto activities for several years, and is a national model for regulating the space.”
NYDFS’ statement said the bank still had “significant withdrawal requests” pending over the weekend, after a run on deposits on Friday.
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