The Superintendent of the New York State Division of Monetary Companies (NYDFS), Adrienne Harris, has refuted allegations that cryptocurrency depositors had been answerable for the collapse of Signature Financial institution.
At a listening to about stablecoins held by the Home Monetary Companies Committee on April 18, Harris said that the liquidity disaster that led to Signature Financial institution’s collapse was not prompted solely by cryptocurrency depositors, however by varied depositors withdrawing their funds from the financial institution, Bloomberg reported.
Harris reiterated her stance on cryptocurrencies in the course of the listening to, dismissing the notion that they had been answerable for the financial institution’s failure and calling it a “misnomer.”
That is in step with her earlier comments on the Hyperlinks NYC convention, the place she defended cryptocurrencies and expressed skepticism towards authorities officers who criticized them.
Signature’s crypto shoppers
Superintendent Harris said that solely 20% of depositors at Signature Financial institution had been cryptocurrency shoppers, and 20% of all depositors withdrew their belongings, which led to the financial institution’s liquidity disaster.
“The outflow of crypto deposits had been in actual proportion to the illustration within the depositor base total.”
Signature Financial institution’s depositors who withdrew their funds and contributed to the financial institution’s liquidity disaster got here from varied sectors, together with the crypto trade, meals distributors, fiduciaries, trusts, and regulation companies, in response to Superintendent Harris.
The financial institution had beforehand said plans to cut back companies for the crypto trade because of regulatory strain and challenges inside the digital asset sector. Regulators took management of the financial institution after outflows reached billions of {dollars} throughout an enormous financial institution run.
The put up Crypto blamed unfairly for Signature Bank’s liquidity crisis, says NY regulator appeared first on CryptoSlate.
Discussion about this post