A spokeswoman for the New York state banking regulator rejected the suggestion that Signature Bank collapsed due to ties to the crypto industry. The Block reports.
During a hearing before the relevant Congressional committee, Superintendent Adrienne Harris said:
It is erroneous to suppose that the collapse of Signature Bank is connected with cryptocurrencies.
According to her, the institution’s collapse was the result of panic among clients, which was sparked by the collapse of Silicon Valley Bank.
Over the course of the evening, about 20% of deposits were withdrawn, but only a fifth of them were linked to the digital assets industry, Harris noted.
The rest were ordinary commercial clients with uninsured deposits who were leaving the bank. Therefore, we do not see the collapse as being driven by crypto deposits and their instability, the official said.
Harris took part in the committee hearings that had previously been chaired by Signature board member Barney Frank. The former congressman criticized the regulator’s actions, saying that NYDFS forcibly closed the bank because of its involvement in the digital assets industry.
The legislature discussed the proposal to regulate stablecoins.
Earlier, the communitycriticized the bipartisan-backed document.