The Biden administration is facing criticism over its handling of banks involved with cryptocurrency, with many accusing the administration of overstepping its authority. Banks like Silvergate and Signature, which were solvent, were forced to close due to new regulatory guidelines that severely restricted their ability to operate.
Silvergate Bank, a leader in crypto banking, remained solvent even after the collapse of FTX led to a major bank run. However, the Federal Reserve imposed limits on how much of its business could be dedicated to crypto, effectively shutting down its operations.
Former Silvergate executive Elaine Hetrick confirmed that the bank’s closure was directly tied to these new guidelines. Hetrick testified that the bank could have survived had it not been for the Fed’s restrictions. Critics argue that this is part of a broader effort by the Biden administration to stifle the crypto industry.
Signature Bank, another major player in crypto banking, was sold off without its crypto-related assets, further evidence of the administration’s campaign against the industry.
The Biden administration denies any wrongdoing, but many believe these actions are illegal and unconstitutional. As more details emerge, the pressure is mounting on the administration to explain its role in the shutdown of these solvent banks.
