[News]Signature Bank Collapsed, It Embraced Crypto Without Sufficient Safeguards

It appears that Elizabeth Warren, the good senator of the Democratic party, has begun her storyline for this year. This will be to blame the cryptospace if the failure of Signature Bank will spread to other banks very much similar to the financial crisis that begun on 2007. She is presently not blaming the cryptospace directly, however, it would not be shocking if the banks will be given stricter regulations if they want to accept institutional clients from the cryptospace.

Senator Warren further alleged that Signature Bank took on “excessive risk” to boost its bottom line by serving crypto clients, such as the Nasdaq-listed crypto exchange Coinbase, blockchain infrastructure platform Paxos, and collapsed crypto exchange FTX. By December last year, crypto clients accounted for about 30% of Signature Bank’s total deposits. Warren stated:

Signature Bank bought into its get-rich-quick narrative … Signature Bank was caught short because it embraced crypto customers with insufficient safeguards.

According to Bloomberg, the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) were already investigating Signature Bank’s work with cryptocurrency clients before regulators took possession of the bank last Sunday.

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