•US bank closure affects crypto firms such as Paxos Trust, Celsius Network and other major crypto firms.
•Silicon Valley Bank (SVB) handled over $5 billion of funds for cryptocurrency venture capital funds.
•Decentralize with Cointelegraph unpacks whether US regulators are targeting the crypto ecosystem through the closure of SVB and Signature Bank.
Crypto Firms Impacted by US Bank Closure
The recent decisions taken by the Federal Deposit Insurance Corporation (FDIC) and New York State Department of Financial Services have caused major disruption to several cryptocurrency firms in the United States, such as Paxos Trust, Celsius Network, and other major crypto companies.
Silicon Valley Bank (SVB)
Silicon Valley Bank (SVB) reportedly handled over $5 billion of funds for a handful of cryptocurrency venture capital funds, including Andreessen Horowitz, Paradigm and Pantera Capital in recent years. USD Coin (USDC) issuer Circle was directly affected by the closure of SVB, with $3.3 billion tied up in the bank after its closure. Cryptocurrency markets were also directly affected, with USDC temporarily losing its peg to the U.S. dollar for several days.
Regulators Targeting Crypto?
Several high-profile commentators in the U.S have suggested that there is mounting pressure on banks to stop serving cryptocurrency-related businesses while a spokesperson from FDIC has refuted claims that future sale of Signature Banks will not require divestment of crypto activities. Decentralize with Cointelegraph breaks down whether US regulators are targeting the crypto ecosystem through the closure of SVB and Signature Banks or if it’s just circumstantial evidence pointing towards an active target on cryptocurrencies by federal institutions in America?
Decentralize With Cointelegraph
Cointelegraph business editor Sam Bourgi and journalist Gareth Jenkinson break down the major talking points from this banking collapse fiasco discussing whether regulators are targeting the cryptocurrency industry nationwide or not? They also provide insight into how this news may affect trading markets across all platforms as well as US citizens who trade cryptos actively..
Conclusion
The closure of major US Banks by regulatory institutions has been a significant talking point this week & many high profile commentators have made their opinion known on this issue affecting multiple sectors within finance & tech industries alike – particularly those related to cryptocurrencies & blockchain technology projects based within America’s borders!