The Biden administration’s efforts to regulate the financial sector have come under fire, particularly for targeting crypto-friendly banks like Silvergate and Signature. These banks, which were solvent at the time of their closures, were forced out of business due to new guidelines imposed by federal regulators.
Silvergate Bank, which specialized in serving the crypto industry, was able to survive a massive bank run following the collapse of FTX. However, the Federal Reserve’s new restrictions made it impossible for Silvergate to continue its crypto operations. The bank’s former chief administrative officer, Elaine Hetrick, confirmed that the Fed’s interference was the primary reason for its closure.
Hetrick’s testimony reveals that the bank was stable but unable to meet the Fed’s demands to reduce its crypto exposure. The bank had no choice but to liquidate, leaving many in the crypto industry without reliable banking options.
Signature Bank, another victim of the regulatory crackdown, was sold off, but none of its crypto-related assets were included in the sale. This further demonstrates the Biden administration’s apparent hostility toward the crypto industry.
Critics argue that these actions are unconstitutional and illegal, targeting a legal industry simply because regulators do not like it. As the controversy continues, many are calling for accountability from the Biden administration for what they see as a targeted campaign against crypto banking.
