The digital currency market has continued to pump happily of late, although smaller profit-taking has now cooled the situation somewhat. But the stock market also celebrated a first recovery today after the US inflation data. The banking crisis remains in the minds of many investors, but the really big shock didn’t materialize, which can also be seen in the recovery of many bank shares from the second row. Now Barney Frank, a board member of Signature Bank, recognized financial expert & former congressman commented on the forced closure of Signature Bank:
“They shoot one man to encourage the others,”
The financial expert uses a quote that is actually used in a military execution. Because this could present itself as an incentive for other prisoners to behave differently in the case of a singular character. Consequently, US authorities had looked to Signature Bank to keep other banks out of the digital currency market. One is therefore merely a “pawn sacrifice” in the state regulatory fight against cryptos.
New meme coin with 100x potential – learn more here
Massive outflow of capital: situation improved, then the US authorities came
Signature executive Frank explained in one CNBC Interview, that on Friday there was no sign of trouble until a run on SVB deposits began. This bank run caused the confiscation of the bank. The previous troubles at Silvergate bank, a major player in the crypto market, added to sentiment. Panic spread among many bank customers with high uninsured deposits, so that they emptied their accounts with the SVB.
Although Signature customers were also concerned and partially shifted deposits to larger banks, according to Frank the Signature bank tried to find solutions, including the search for more capital and potential interested parties for the bank. Barney Frank called the regulators’ final decision to fire Signature executives and close the bank an unfair action. Regulators then initiated a sale process for the bank to protect customers. However, freely adapted from Frank, there were probably other reasons that promoted such a strict approach.
Headwinds in the USA are increasing: US authorities are pushing regulation
In the US, the climate for cryptocurrencies is becoming increasingly hostile. In the space of a week, the US crypto industry has now lost two key financial partners: Silvergate Bank and Signature Bank, both of which accepted deposits from companies for digital assets and were more open than other financial institutions to do so. Both banks acted as important bridges between the crypto and fiat worlds. Notably, Signature’s payments were processed through Signet’s innovative private blockchain system, which enabled the rapid transfer of crypto to fiat 24/7.
Barney Frank: From the US Congress to the board of crypto bank Signature
Barney Frank is a former US congressman and was the chairman of the House Finance Committee from 2007 to 2013 – so Barney Frank is no stranger, much less a conspiracy theorist. What the American says is mostly true. The allegations against the authorities that it was another crypto-hostile, concentrated action are all the more significant.
Barney Frank played a pivotal role in passing the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, one of the key pieces of legislation regulating the US financial industry. The law includes various provisions for the supervision and regulation of financial institutions. Frank actively advocated strict regulation of the financial markets and has now become a victim of government intervention.
The Dodd-Frank Wall Street Reform and Consumer Protection Act is a US federal law passed in 2010 to reform the US financial system after the 2008 financial crisis. The most important measures include regulating financial products, creating more consumer protection, improving transparency and introducing stricter capital requirements for banks.
Crypto alternative: This meme coin could now go viral
Despite the current issues and battered markets, many cryptos have been bullish over the past few days. There is also a new meme coin in the presale in March 2023, which could go viral in the next few weeks. Then Love Hate Inu combines the hype potential of crypto memes with a disruptive vote-to-earn concept.
In the first few days of the presale, Love Hate Inu was able to collect over $650,000, so that in about three days only $300,000 is missing. The momentum is strongly bullish. If you want to buy LHINU tokens at the guaranteed cheapest pre-sale price before the first price increase, you should hurry.
Author: Daniel Robrecht
After studying law and management, Daniel decided to work as a freelance author and has been writing qualitative publications on various specialist topics for around 10 years now. As an investor, he gained years of experience with stocks & cryptocurrencies. In addition to a long-term investment approach, Daniel is also passionate about short-term markets. Through targeted further training at international universities, he has acquired extensive knowledge about the capital markets, stocks, cryptocurrencies and decentralized finance. Daniel’s primary focus is on general market trends, exciting stocks, business news and the digital currency market. In his private life, too, there is never a day without the financial markets. As an author, Daniel writes for leading German-language publications in this field. Daniel publishes for Finanzen.net, among others, Business2Communityand FXStreet.de. Daniel on LinkedIn.
“Investing is speculative. When investing, your capital is at risk. This website is not intended for use in any jurisdiction where the trading or investment described is prohibited and should be used only by persons and in ways permitted by law. Your investment may not be eligible for investor protection in your country or country of residence. So do your own due diligence. This site is available to you free of charge, however we may receive commissions from the businesses we feature on this site.”
