The Federal Deposit Insurance Corporation (FDIC) is requiring potential buyers of Signature Bank to divest all their cryptocurrency-related businesses. This means that whoever acquires the New York-based bank, which currently holds over $10 billion in assets, will have to give up any involvement in crypto. The move is part of the FDIC’s push to ensure that traditional banking institutions remain separate from the cryptocurrency industry, which is still largely unregulated. This decision may also serve as a warning to other banks considering entering the cryptocurrency market.
The United States Federal Deposit Insurance Corporation (FDIC) has reportedly made a decision against the crypto industry, amid instability in the US banking sector. Potential buyers of the crypto-friendly Signature bank can now submit their bids, with a major condition that they must give up all crypto businesses at the bank. The move has raised controversy among the crypto community and has added to the realization that regulators have always been against crypto businesses. The closure of Signature Bank and two other crypto-friendly banks, Silvergate and Silicon Valley Bank, has been weaponized as an attack on the industry. Despite these challenges, a Coinbase spokesperson stated that the crypto industry is resilient and would absorb the blow and move on just as it has in other events. Meanwhile, the crypto market has maintained composure, with Bitcoin and other altcoins still in the green after a slight retracement. So far, the global crypto market cap remains above $1 trillion.