US wants to send message against encryption: Signature Bank exec

Key facts:

  • Nic Carter thinks regulators undercut crypto-friendly banks.

  • Carlos Maslatón said the United States wants to prevent cryptocurrencies from being exchanged for fiat currencies.

There appears to be an intent to influence crypto behind Signature Bank’s closure, or at least that’s what Barney Frank, a senior executive at the financial institution that was overtaken by U.S. authorities on Sunday, thinks so.

“I think part of what’s happening is that regulators want to send a very strong message against crypto,” said Frank, who is also a member of the House of Representatives and has introduced a bill that would eventually restructure his nation’s financial regulatory system.

In the executive’s view, the bank is being used as an example of what can happen if you enter the world of cryptocurrencies, because as far as the entity is concerned, “based on fundamentals, there is no bankruptcy,” he told CNBC.

Several experts joined Frank’s post via the social network Twitter.

One of them was Coin Metrics investor and co-founder Nic Carter, who commented that what happened to Signature was a “huge scandal.” He believes the bank “has been executed, but not due to any bank run”.

“My conclusion is that politicians like Liz Warren, along with regulators, crippled cryptocurrency banks and encouraged runs on them. Then they shut them down under the pretext of withdrawals. A massive banking crisis,” Carter said.

CriptoNoticias reported on Sunday that Argentinian lawyer Carlos Maslatón debunked a similar theory in the Twitter space.

In fact, Maslatón agreed with the Signature executive, stating that closing the three banks is a message the U.S. wants to send to bitcoin holders and cryptocurrency users.

Although in his paper, the Argentinian goes a step further by stating that the message or warning to cryptocurrency users is that they will be able to obtain dollars in exchange for their crypto holdings, the Fed only offers an exit from that market, while Not the entrance.

“In my opinion, they let us go, but today there is no place to buy crypto with fiat dollars,” he explained.

In his musings, he left the question unanswered “Has the Fed found the political, financial and legal time (without saying it) for Bitcoin to no longer be convertible to the U.S. dollar?”

Signature is the third bank to be seized by US regulators and is now controlled by the Department of Financial Services (DFS). Right after Silvergate and Silicon Valley Bank (SBV) closed.

What these three banks have in common is their openness to cryptocurrencies. For its part, Signature created a payments network that operates 24/7 for cryptocurrency customers and has $16.5 billion in cryptocurrency-related customer deposits.

Source of information: Compiled from CRIPTONOTICIAS by 0x Information.The copyright belongs to the author Nickolas Plaza, and shall not be reproduced without permission

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