US Excongressman Believes Regulators Let Banks Know Cryptocurrencies Are Toxic

Former US Congressman Barney Frank has stated that Signature Bank was able to resolve their outflow of deposits by the time the New York state regulator had chosen to close the financial institution.

According to him, the bank likely would have been able to solve the problem on its own, as the NYDFS had pointed out that there were no claims against the company regarding their crypto industry business.

On the other hand, Frank believes the regulators wanted to make it clear that cryptocurrencies were “toxic.”

Over the weekend, the US had begun reorganizing two crypto-friendly banks, SVB and Signature Bank, and Frank believes his bank was chosen as an example to show that banks should not be dealing with cryptocurrencies.