FDIC Rejects Claim That Signature Bank Buyer Must Divest Cryptocurrency


According to Reuters, the FDIC demanded that Signature’s purchasers “cease” the bank’s crypto activity.

The Federal Deposit Insurance Corporation disputed that it would force any buyer of Signature Bank to abandon its crypto operations.

The FDIC replied to a Wednesday Reuters article quoting anonymous sources, “any acquirer of Signature must agree to give up any crypto activities at the bank.” A representative for the FDIC refuted this to Reuters.

A representative for the FDIC said in an email that “the receivership will not terminate until all of the bank’s assets are sold, all claims against the bank are resolved, and the buyer determines the terms of their offer.”

The buyer will inform the FDIC of “what assets and liabilities from the collapsed bank it is ready to assume,” according to the agency’s resolution manual. The spokesman also directed CoinDesk to two joint comments issued by the FDIC, Office of the Comptroller of the Currency, and Federal Reserve, one of which indicates that banks are “neither banned nor discouraged” from providing services to any industry.

A spokeswoman for the FDIC told Reuters that “the agency would not mandate liquidation of crypto activity as a condition of any sale.”

The FDIC now has custody of Signature after it was seized by the New York Department of Financial Services last Friday. A spokeswoman for the New York Department of Financial Services stated in a statement that the regulator had lost confidence in the bank’s leadership following a bank run last Friday and a lack of “reliable” information over the weekend, despite claims by Signature board member Barney Frank (of the Dodd-Frank Act) that the move was political and motivated by anti-crypto sentiment.

Reuters reported that the FDIC intends to auction Signature and Silicon Valley Bank, another bank seized by a state regulator last week, before the end of this week.

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