"Do regulators really want to see the crypto market falter?"
In the wake of concerns about the collapse of Silicon Valley Bank, Signature Bank's customers who quickly withdrew more than $10 billion in deposits have been the cause of the bank's failure to survive.
According to Barney Frank, a member of the board of directors and a former member of the United States (US) House of Representatives, the actions of the regulators who seized control of Signature Bank to protect depositors and the US banking system have shocked the bank's officials.
It is well known that New York-based Signature Bank has extensive contracts in crypto, real estate and legal markets in 40 locations with recorded assets of $110.36 billion and deposits of $88.59 billion by the end of 2022.
Frank is of the opinion that the regulators want to show that crypto is toxic through their rather aggressive approach.
This is because regulators seem to have a hidden agenda to show that US banks should not be involved in crypto.
Although Frank praised the government's move to create security for uninsured deposits, he said Signature Bank would have performed better if government agencies had acted earlier.
Even so, Signature Bank executives implement various methods such as finding additional funding sources to help the company re-establish its position.
However, the bank abruptly closed on the same day after its top administrators were sacked from their positions without explanation, with Silvergate Bank now overseen by regulators who assured customers that their savings were accessible.
