Barney Frank:Regulators Wills to Send Strong Anti-Crypto Message
Former U.S. Representative Barney Frank said regulators shut down Signature Bank to send a strong message about the crypto industry. According to him, the bank takeover was not due to insolvency but rather an attempt to make an example of the institution and warn other banks to consider working with cryptocurrencies.
Signature Bank specializes in providing high-end banking services to clients ranging from small businesses to ultra-high-net-worth individuals. The bank has been widely successful and has $50.1 billion in total assets and over 5,000 clients.
Signature Bank board member and former U.S. Rep. Barney Frank said that part of what happened was that regulators wanted to send a very strong anti-crypto message and there was no insolvency. CNBC https://t.co/r687rdA14F
— Wu Blockchain (@WuBlockchain) March 14, 2023
Barney Frank: Regulators Take Action
Signature Bank was seized by the New York Department of Financial Services after months of investigations into its practices. The DFS cited violations of anti-money laundering laws and other misconduct for the seizure. This action shocked the financial world, as up until then, Signature Bank had a strong reputation and no history of legal or financial misconduct.
Barney Frank’s Opinion
Barney Frank, the board member at Signature Bank and co-sponsor of the Dodd-Frank Act, believes the regulators wanted to send a strong anti-crypto message with their decision. In an interview on Monday, Frank said he believes the state officials behind the action try to make an example of Signature Bank to warn other banks considering working with cryptocurrencies. He also noted that there was no insolvency on the part of the bank.
The news of the takedown of Signature Bank has fired up the crypto community, with many reacting with outrage over what they perceived to be an attack on the industry. Some have compared it to the persecution of Galileo for his views on the solar system, while others have expressed concern over the precedent this sets for banking institutions that are willing to work with the crypto industry.
It remains to see how the crypto industry will respond to the actions against Signature Bank. While the move may have been intended to send a strong message, it could also have a chilling effect on banks considering working with cryptocurrencies. In the coming months, we will likely see increased scrutiny of the sector and a closer look at the regulations surrounding it.
