12 days ago 1 min read

Congress Will Look Into SVB And Signature Bank's Crypto Failures

silicon valley-signature bank-blockchain-cryptocurrent

A hearing to look into the failure of SVB and Signature Bank has been planned by the US House Financial Services Commission, and witnesses from the Federal Reserve and Federal Deposit Insurance Corporation are expected to give testimony on March 29.

Martin Gruenberg, the head of the FDIC, and Michael Barr, the vice chair for supervision at the Fed, are anticipated to testify. Representatives Maxine Waters and Patrick McHenry initiated the hearing. They said that this hearing will aid the committee in comprehending the causes and circumstances surrounding the failure of the banks.

Earlier this month, on March 10, Silicon Valley Bank collapsed as a result of a bank run by significant depositors. To protect the majority of uninsured depositors, the government intervened, though. As it closed on March 12, Signature Bank apparently had no solvency difficulties. When New York regulators intervened, they turned the bank's insurance operations over to the FDIC.

As a result of the bank failure, several MPs have suggested that exposure to cryptocurrency enterprises may be to blame. Advocates for the space, meanwhile, have asserted that officials were attempting to "de-bank" cryptocurrency and blockchain firms. A report on the Fed's oversight and control of Silicon Valley Bank is anticipated from Barr. The Securities and Exchange Commission and Department of Justice are allegedly both starting their own investigations into the decisions made by some of the bank's officials prior to its collapse.

It has been stated by the House Financial Services Committee that it intends to hold several hearings.

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