The collapse of Signature Bank is among the most significant bank failures in the financial history of the United States, which was linked to its exposure to crypto. However, NY state’s financial regulator, the Department of Financial Service denies these claims.
According to Bloomberg, in the House Financial Services Committee hearing on stablecoins, Superintendent Adrienne Harris stated, “It is a misnomer that the failure of Signature Bank was related to crypto.”
She reasoned, “The outflow of crypto deposits were in exact proportion to the representation in the depositor base overall,” On the weekend of the bank failure, nearly 20% of depositors walked away from the bank on the same day out of which only 20%, a fraction of the total exodus, were crypto investors.
Some digital asset analysts attributed the shutdown of crypto-friendly Signature Bank to a concerted effort by US banking authorities and regulators.
Harris confirmed that Signature banked a “healthy proportion of crypto customers” and the bank had already begun to scale back from serving crypto firms.
Also Read: Tether Accused of Using Signature Bank to Access U.S. System
