New York Department of Financial Services: Taking over Signature Bank has nothing to do with its encryption business

A spokesperson for the New York Department of Financial Services (NYDFS) said Sunday’s decision to take over Signature Bank had nothing to do with the bank’s cryptocurrency operations. Former U.S. Rep. Barney Frank previously criticized the regulator’s decision, claiming that they “want to send a message that cryptocurrencies are harmful.” A spokesperson for NYDFS said in a statement that the decision to take over the bank and turn it over to the FDIC was based on the bank’s current condition and its ability to conduct business in a safe and healthy manner. The spokesperson said they were working with Signature Bank executives to assess its financial situation, ability to fulfill withdrawal requests and whether it can continue to operate normally. The bank failed to provide “reliable and consistent data, creating a serious crisis of confidence in the bank’s leadership”. NYDFS said that Signature is a bank with a more substantial business, and that Crypto assets are only a small part of the bank’s overall business. (The Block)

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