Signature Bank department stands in Manhattan on March 13, 2023 in New York City. Image: Getty Images

The determination to close down Signature Bank on the weekend was not associated to cryptocurrencies, a spokesperson of the New York State Department of Financial Services (NYDFS) told Reuters on Tuesday.

See associated article: Circle’s Disparte speaks on de-risking crypto from banking risks

Fast information

• The NYDFS mentioned the lender had “a significant crisis of confidence in the bank’s leadership” and the closure was “based on the current status of the bank and its ability to do business in a safe and sound manner,” based on the report.
• The authority’s assertion got here after former congressman Barney Frank, a Signature Bank board member, told CNBC that the closure was associated to “regulators wanted to send a very strong anti-crypto message.”
• On Sunday, the NYDFS mentioned it had taken possession of Signature Bank “in order to protect depositors.”
• The fall of Signature Bank adopted the collapses of California-based and crypto-linked financial institution Silvergate Capital last week and the Sunday closure of Silicon Valley Bank, which at one level over the weekend precipitated Circle’s USDC stablecoin to lose its peg to the U.S. greenback.
• In an interview with Forkast this week, Circle Chief Strategy Officer Dante Disparte mentioned the latest U.S. banks fallout is a “stress test” for each conventional finance and digital property, however “to weather the storm side by side is a powerful opportunity.”

See associated article: Circle’s USDC stablecoin regains parity as regulators act to stop bank run risk