Blockchain Association seeks info from Fed, FDIC and OCC on ‘de-banking’ crypto firms

The United States-based crypto advocacy group Blockchain Association asked financial regulators to provide information related to the potential “de-banking of crypto companies” due to the failure of Signature, Silicon Valley Bank and Silvergate bank.

In a March 16 notice, the Blockchain Association said it had submitted Freedom of Information Act requests to the Federal Deposit Insurance Corporation, the Federal Reserve System’s board of governors and the Office of the Comptroller of the Currency for documents and communications that could potentially be disclosed. showed the regulator’s actions “mproperly contributed” to the collapse of the three banks. According to Blockchain Association CEO Kristin Smith, crypto companies “should be treated like law-abiding businesses” in the US with access to bank accounts.

“BA is investigating troubling allegations – including account closures and refusals to open new accounts – that have escalated into this week’s banking crisis,” said the association, adding, “A crisis that long-term opponents of crypto are quick to blame, incorrectly, on the technology.”

For many in the space, the new banking crisis began with Silvergate’s parent company announcing on March 8 that it would “reduce operations” for the crypto bank. Silicon Valley Bank followed on March 10 with its own failure after deposits, and the Treasury, Fed and FDIC announced the closure of Signature Bank on March 12.

At the time, a joint statement from regulators said the action against Signature was being taken to “protect the U.S. economy by strengthening public confidence in our banking system.” However, former US House of Representatives member and Sign Barney Frank reportedly claimed the FDIC sent a “strong anti-crypto message” to shut down the bank, and several lawmakers demanded answers.

An FDIC spokesperson told Cointelegraph that the bidding process for banks interested in acquiring Signature and Silicon Valley Bank has begun. He suggested a recent report that the FDIC is asking potential buyers from banks that failed to support crypto services could be part of a “secret marketing process.”

“An acquirer tells the FDIC what assets and liabilities of the failed bank it is willing to take, as well as what (if any) money will change hands,” according to the FDIC’s resolution handbook.

related: US crypto regulation is happening ‘behind closed doors’ – Blockchain Association CEO

Before it closed, many considered Signature to be the leading crypto-friendly bank in the United States, providing services to Coinbase, Paxos Trust, BitGo and Celsius. Some in the space have suggested that a perceived crackdown by federal regulators on banks serving crypto companies could force companies to turn to “shadier” options.