The confiscation of the Signature Bank should send a strong anti-crypto message, claims board member

The confiscation of the Signature Bank should send a strong anti-crypto message, claims board member

Barney Frank-a member of the Board of Signature Bank and former member of the US Congress-believes that the government had "no factual reason" to force its company into bankruptcy on Friday.

Rather, he interpreted the campaign as a attempt by the supervisory authorities to "send a very strong anti-crypto message across the country".

Why close the signature?

in a telephone interview with cnbc , frank said Dollar from the company in a panicked panic after the Silicon Valley Bank (SVB) had been forced close its gates on Friday.

Only two days later the FDIC Similar action against the signature, while the Federal Reserve announced that it would do this completely Style = "Font-Weight: 400"> Get out insert for both banks. The company's management teams were pulled out of circulation, and the supervisory authorities are currently carrying out a sales procedure for each.

According to Frank, such a measure was not necessary for signature, where the managers were of the opinion that the emigration of deposits had stabilized until Sunday.

"I think part of what happened was that the supervisory authorities wanted to send a very strong anti-crypto message," said Frank. "We have become a figurehead because there was basically no bankruptcy."

The former congress member added that signature had not determined any problems "until we got a deposit run late Friday that was a pure infection of SVB".

Frank was a co-author of the "Dodd-Frank Act", a reform package that is said to protect consumers from the predatory lending practices that triggered the financial crisis in 2008. According to the FED, a complete rescue operation for the SVB and signature inserts was required to protect the stability of the financial system.

The context of the failure of signature cannot be ignored: the company was the last of the three leading US crypt cars-Silvergate, SVB and Signature Bank-which remained. After the withdrawal to signature after the former had uncovered operational difficulties at the beginning of March, it remains a mystery where companies like coin base and will withdraw to the next.

Operation Chokepoint 2.0

Many in the crypto industry suspect that the whole series of regulatory attacks on stable coins, staking products and crypto-friendly banks in the past few months has been a conscious attempt to displace the industry-a conspiracy with the nickname "Operation Chokepoint 2.0".

the crypto exchange kink-the last month victim of the regulatory hammer-used the nickname as a response to events related to SVB and Signature Bank on Sunday.

"You will continue to attack the rails, products and companies that facilitate direct crypto ownership and the use of defects", claims .