FDIC Denies Report Signature Bank Purchaser Must Divest Crypto

The Federal Deposit Insurance Corporation denied it might require any client of Signature Bank to divest its crypto sports.

The FDIC replied to a Wednesday Reuters document which stated “any consumer of Signature should conform to surrender all of the crypto commercial enterprise on the financial institution,” mentioning  unnamed sources. An FDIC spokesperson denied this to Reuters.

An FDIC spokesperson stated in an e-mail that “the receivership does now no longer quit till all of the financial institution`s belongings are offered and all of the claims in opposition to the financial institution are addressed, and the acquirer makes a decision the situations in their bid.”

The acquirer will inform the FDIC “what belongings and liabilities from the failed financial institution it's miles inclined to take,” the spokesperson stated, mentioning the business enterprise`s decision handbook. The spokesperson additionally referred CoinDesk to 2 joint statements posted through the FDIC, Office of the Comptroller of the Currency and the Federal Reserve, one in every of which states that banks are “neither prohibited nor discouraged” from presenting offerings to any sector.

Reuters said that an FDIC spokesperson advised the information carrier that “the business enterprise might now no longer require divestment of crypto sports as a part of any sale.”

Signature became seized over the weekend through the New York Department of Financial Services and became over to the FDIC. While Signature board member Barney Frank (of the Dodd-Frank Act) claimed it became a political move, likely due to an anti-crypto sentiment, a NYDFS spokesperson stated in a assertion that the regulator had misplaced self assurance withinside the financial institution`s management after a financial institution run closing Friday and a scarcity of “reliable” records over the weekend.

The FDIC is now trying to public sale Signature and Silicon Valley Bank – any other financial institution seized through a country regulator closing week – likely through the quit of this week, Reuters said.