Signature Bank’s Failure Is Not Related To Cryptocurrency: NYDFS Superintendent

The manager of the New York Dept. of Financial Services (NYDFS), Adrienne Harris, has debunked the rumor that the U.S. regulators want to introduce an Operation Choke Point 2.0. He added that it is ludicrous to think that Signature Bank collapsed due to its dealings in cryptocurrency. 

According to the report, Signature Bank, a crypto-friendly bank, collapsed in early March. Its abrupt closure stirred some rumors that the US government is trying to implement a regulation by enforcement on banks dealing with crypto. However Harris, the Superintendent of NYDFS, recently claimed that the rumor was false, as the bank’s closure was not related to crypto.

Harris Debunked Rumors Concerning Siganture Bank Closure

Harris reportedly made the comments during the recently concluded Chainalysis Links summit in New York City. According to her, a new-fashioned bank system is the sole factor that led to the collapse of Signature Bank. She added that it is absurd to think the bank failed because of its engagement with crypto.

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In addition, Harris emphatically stated that it is a wrong notion that the U.S. government is trying to enforce rules that would prevent some industries from receiving banking services in a process tagged “Operation Choke Point 2.0.” 

She further explained that the Operation Choke Point was launched in 2013-2017 by the Justice Dept of America. Harris stated that the operation targetted banks presumed to be partnering with firms involved in fraudulent activities.

According to her, the NYDFS closed down Signature Bank on the account of protecting the American economy from system risks. The Signature Bank collapse happened shortly after the failure of another two crypto-friendly banks, Silicon Valley Bank and Silvergate Bank.

Barney Frank, a board member of Signature bank, revealed that the bank was whole and healthy with no bankruptcy issue when the Feds ordered its closure. He added that the abrupt action depicts that the government is sending very potent anti-crypto signals. Furthermore, some policymakers commented on the issue. For instance, Michael Bennet, a Colorado Senator, stated that Signature bank was not prudent enough in its decisions to associate with digital asset companies.

Author: Johan Andersson

Johan Andersson is a dedicated crypto blog writer who enjoys sharing his knowledge and experience in the world of cryptocurrencies and blockchain. He is passionate about educating and empowering others.

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