According to a New York State Department of Financial Services (NYDFS) spokeswoman, the decision to close down Signature Bank over the weekend had nothing to do with cryptocurrency.
Disparte from Circle discusses de-risking cryptocurrency from banking issues in a linked piece.
Quick facts
According to the NYDFS, the lender had "a substantial crisis of confidence in the bank's leadership," and the closure was "based on the current situation of the bank and its capacity to conduct business in a safe and sound manner," according to the report.
The shutdown was connected to "regulators intended to deliver a very strong anti-crypto message," retired congressman Barney Frank, a member of the Signature Bank board, told CNBC.
The NYDFS announced on Sunday that it has seized control of Signature Bank "to protect depositors."
Following the failures of Silicon Valley Bank on Sunday and the crypto-linked bank Silvergate Capital last week, which led at one point over the weekend to the USDC stablecoin of Circle losing its peg to the US dollar, Signature Bank also failed.
Circle Chief Strategy Officer Dante Disparte said the current impact from U.S. banks is a "stress test" for both traditional banking and digital assets, but "to weather the storm side by side is a powerful opportunity" in an interview with Forkast this week.