NY regulators say Signature Bank closure unrelated to cryptocurrency
Mar. 14, 2023
By Mike Dalton
The New York State Department of Financial Services said that its closure of Signature Bank was unrelated to the bank's crypto ties.
The New York State Department of Financial Services (NYDFS) said on March 14 that its closure of Signature Bank was not related to the bank’s crypto industry ties.
NYDFS denies Signature was closed over crypto
Though Signature worked extensively with crypto firms, a representative has denied that the NYDFS’ decision to shut down Signature was related to that activity.
Statements cited by various outlets including Fortune read:
“The decisions made over the weekend had nothing to do with crypto…The decision to take possession of the bank and hand it over to the FDIC was based on the current status of the bank and its ability to do business in a safe and sound manner on Monday.”
Previously, Signature board member and former U.S. representative Barney Frank made several statements suggesting that the bank’s closure was crypto-related. Frank alleged in a CNBC interview that Signature Bank was closed to “send a strong anti-crypto message.”
However, statements from the regulator responsible for Signature’s closure clearly refute the notion that willingness to work with crypto clients was an issue.
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