New York Financial Services Department: Taking over Signature Bank has nothing to do with its encryption business

According to reports, a spokesman for the New York Financial Services Department (NYDFS) said that the decision to take over Signature Bank on Sunday had nothing to do with the bank’s cryptocurrency business. Previously, Barney Frank, a former US congressman, criticized the decision of the regulators, claiming that they “wanted to transmit harmful information about cryptocurrency”. A spokesman for NYDFS said in a statement that the decision to take over the bank and hand it over to FDIC was based on the current situation of the bank and its ability to conduct business in a safe and healthy manner. The spokesman said that they were working with senior executives of Signature Bank to assess its financial status, ability to meet withdrawal requests and whether it could continue to operate normally. The bank did not provide “reliable and consistent data, resulting in a serious crisis of trust in the bank’s leadership”. NYDFS said that Signature is a bank with more important business, and digital asset business only accounts for a small part of the bank’s overall business. （The Block）

Interpretation of this information:

The New York Financial Services Department (NYDFS) has denied that its decision to take over Signature Bank on Sunday was related to the bank’s cryptocurrency business. According to NYDFS, the decision was made based on the current financial situation of the bank and its ability to operate safely and healthily. NYDFS is currently working with senior executives of Signature Bank to assess its financial status, ability to meet withdrawal requests, and ability to operate normally. The spokesperson for NYDFS added that Signature Bank’s digital asset business only accounts for a small part of its overall business.

While this statement from NYDFS may have reassured some people who were concerned that the takeover was a result of the bank’s involvement in the cryptocurrency market, others remain skeptical. Barney Frank, a former US congressman, believes that the NYDFS regulators wanted to send a negative message about cryptocurrency through their actions. It is unclear whether this is true or not, but it is clear that there is a certain level of distrust between regulators and the cryptocurrency industry.

The NYDFS statement also highlights the importance of banks providing reliable and consistent data. The lack of such data from Signature Bank has led to a serious crisis of trust in the bank’s leadership. This reinforces the importance of transparency and accountability in the financial industry.

Overall, the NYDFS statement emphasizes that the takeover of Signature Bank was a necessary step to ensure the safety and health of the bank’s operations. While the spokesperson for NYDFS denied that the decision had anything to do with the bank’s cryptocurrency business, it is unclear whether this is entirely true or not. Regardless, the statement highlights the need for transparency and accountability in the financial industry.