End of Signature Bank, a new blow for crypto in the US

With the closure from Signature Bank by the US authorities, it is a third crypto-friendly financial institution which disappears from the American landscape.

As Silvergate Bank collapsed last Wednesday and regulators closed Silicon Valley Bank on Friday, the closure from Signature Bank by the New York Department of Financial Services on Sunday carries a new blow à the crypto industry at United States.

The three banks, including the Californian Silvergate and the New Yorker Signaturewere known to serve major US cryptocurrency players, including Coinbase, Ripple, Circle and Paxos, which are now increasingly cut off from the US banking system.

Silvergate and Signature provided payment networks enabling the transfer of funds in real time. Their SEN and Bookmark were particularly appreciated by crypto firms.

CircleCircle, whose stablecoin fell against the dollar over the weekend and finally returned to parity last night, has announced that it will no longer be able to process USDC redemptions with Signet. The company will rely on on its banking partner BNY Mellon.

If crypto companies continue to be cut off from the banking system, for no apparent reason, it is highly likely that the most mobile companies will move elsewhere. It seems like lately, there is a new headwind every day for American businesses […] With regulatory clarity in the form of MiCA, Europe seems well positioned to capitalize,” wrote Conor Ryder, an analyst at Kaiko, in a blog post published Thursday.

In addition to shutting down these crypto-friendly financial institutions, U.S. regulators have, in recent months, tightened the screw and sued several industry giants, including Kraken recently.

Yesterday, Treasury Secretary Janet Yellen, Fed Chairman Jerome Powell and FDIC chief Martin Gruenberg jointly announced taking steps to protect depositors of Silicon Valley Bank and Signature Bank.

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