Signature Bank closure was not about crypto, NYDFS reaffirms

A top New York regulator has stated that Signature Bank’s closure was unrelated to cryptocurrency, according to a report from The Wall Street Journal on April 5.

Adrienne A. Harris, Superintendent for the New York Department of Financial Services (NYDFS), instead attributed the bank’s closure to a “new-fashioned bank run.” Harris explicitly denied any connection to the bank’s crypto-related activities, stating:

“The idea that the taking possession of Signature was about crypto and this is ‘Choke Point 2.0’ is really ludicrous.”

Harris made those statements at the ongoing Links NYC conference.

Other members of NYDFS similarly denied that Signature’s closure was crypto-related in March when a spokesperson said the incident had “nothing to do with crypto.”

Rumors that the bank’s crypto ties were its core issue were stoked by former U.S. Representative Barney Frank, who served as one of Signature’s board members.

Several crypto companies and exchanges, including Coinbase, Kraken, and Binance, relied upon Signature Bank and its Signet network at times.

Signature Bank was initially closed on March 12.

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