New York Banking Regulatory Chief appeared before a parliamentary committee on Wednesday. Regarding how Signature Bank failed due to its involvement in the crypto industry
“It is a misstatement that Signature Bank’s failures are related to crypto,” Director Adrienne Harris said in her testimony before the House Financial Services Committee on Digital Assets. Financial technology firm Harris noted that Signature clients, which include trusts and wholesale food vendors, pulled their money from banks during the panic last month following the Silicon Valley Bank collapse.
“Of course it’s unfortunate that there’s a tide,” Harris said, “but it’s not the case that Signature fails are crypto-related.”
Maxine Waters, the Democratic leader on the House Financial Services Committee, pressed Harris on how she could assert that cryptocurrency It has not played a part in the sudden collapse of the big banks in the region.
Harris responded that about 20% of Signature’s deposits flowed out of the bank in the evening at a failed Silicon Valley bank, but only “20% of 20%” were crypto-related deposits. General commerce with unsecured deposits who want to withdraw money from the bank Therefore, we do not see a collapse as a result of crypto deposits and their volatility,” Harris said.
New York regulators announced Ordered the closure of Signature Bank two days after Silicon Valley Bank’s failure to allow continuation of operations by the Federal Deposit Insurance Corp., the federal banking regulator.
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