Recently, Adrienne A. Harris, a popular New York regulator, has called all Signature-related crypto theories downfall ludicrous. She also insisted that the bank’s high percentage of uninsured deposits and insufficient liquidity were the main reasons why Singanutre Bank fell.
Signature Bank faced liquidity challenges
Adrienne A. Harris, head of the New York State’s Department of Financial Services, recently reiterated that the downfall of Signature Bank is nowhere related to the crypto banking business going in the market. According to Harris, the decision to close the bank was taken not only due to the high percentage of uninsured deposits but also lacked the liquidity to meet the withdrawal requests.
Recently, while speaking at an event organised by the blockchain analysis firm, Chainalysis, Harris also dismissed assertions that her department’s closure of the Signature Bank may be part of an elaborate scheme aimed at strangling the crypto industry.
Harris also stated that the idea of taking possession of Signature Bank was about cryptocurrency, which is ‘Choke Point 2.0’, is really ludicrous. Bitcoin.com, as reported previously, that after DFS announced its decision to shut down Signature Ban, board member and former US lawmaker, Barney Frank, suggested that New York’s Department of Financial Services decision was motivated by its perceived negative predisposition towards crypto.
Although the claims made by Frank were immediately rejected by the DFS, rumours suggesting the regulator’s action against the bank is a part of a coordinated attack on the crypto industry have swelled. To support claims the Department of Financial Services may be trying to kill the crypto industry, critics of the regulator’s decision to place the bank under receivership point to the financial institution states as the go-to bank for crypto exchanges.
Crypto industry’s immature compliance programs
Adrienne A. Harris, a popular New York regulator, has called all Signature-related crypto theories’ downfall ludicrous. However, in her latest salvo against critics, Harris claimed that the crypto industry’s compliance programs still lack maturity. She explained that there is still a lack of maturity around the Bank Secrecy Act-anti-money laundering and cyber security. Meanwhile, a report in the WSJ said the DFS is going to finalise the regulation that gave it authority to access the crypto industry.
What are your thoughts on the recent statement passed by the New York regulator? Do you think there is any other reason for the downfall of Signature Bank except uninsured deposits and insufficient liquidity? Let us know in the comments below. And if you found our content informative, share it with your family and friends.
Also Read: UN Security Council report says North Korea stole over 1 billion USD in crypto assets.
