Silicon Valley Bank, Signature Bank & Bitcoin news
The news in the crypto space run very fast, so here’s what’s happening in the last couple of hours:
Bitcoin surged above $22.5k in the last couple of hours. Altcoins have significant gains too (in the range of: 7% – 10%+). Cryptocurrency prices went up after the FED said they will cover customers’ deposits from Silicon Valley Bank which went bankrupt.
Over the last week, the unexpected failure of Silicon Valley Bank (SVB) has resulted in the depegging of stablecoins (mainly USDC & DAI), which has caused concerns among small businesses, venture capitalists, and other depositors who have their funds tied up in the tech bank. This has led regulators in both the United States and the United Kingdom to prepare emergency measures to mitigate the potential fallout from the bank’s collapse.
New York-based Signature Bank is being closed by New York regulators. The New York Department of Financial Services (NYDFS) is taking over the crypto-friendly bank which has officially closed down.
In a Joint Statement by Treasure, Federal Reserve (FED) and the Federal Deposit Insurance Corporation (FDIC) regulators stated that they: “are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth…. We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority. All depositors of this institution will be made whole. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer.“
References
- Cointelegraph – Silicon Valley Bank collapse: Everything that’s happened until now (posted on: 2023-03-12)
- Cointelegraph – Breaking: Signature Bank closed by New York regulators, citing ‘systemic risk’ (posted on: 2023-03-13)
- CoinDesk – First Mover Asia: Silicon Valley Bank Failure Highlights Small Banks’ Vulnerability; Bitcoin Soars Past $22.5K (posted on: 2023-03-13)
- FED – Joint Statement by Treasury, Federal Reserve, and FDIC (posted on: 2023-03-12)
