The extraordinary steps taken to save a pair of large European and American banks contrast sharply with what the Blockchain Association called a "disturbing trend" of de-banking.
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Banks and bank regulators closed ranks on Thursday to prevent two large banks, Credit Suisse and First Republic, from falling to the panic that doomed three smaller crypto-friendly banks in the last week.
In Washington, D.C., Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and 11 major banks came up with a plan to save First Republic — the 14th-largest bank in the U.S. — after depositors began pulling funds and its stock price tumbled in the wake of the failure of three crypto-friendly banks.
First Republic's troubles, which began in the wake of the collapse of Silicon Valley Bank late last week, were solved by the simple solution of bigger banks depositing $30 billion as a show of faith.
Coincidence or Not?
Now a day after Rep. Tom Emmer, the third-ranking Republican House member asked the FDIC chairman if his agency had "instructed banks under its supervision to not provide crypto firms banking services," a crypto industry association wants to know the same thing.
The Blockchain Association on March 16 announced that it has submitted Freedom of Information Act requests to the the Fed, the FDIC, and Hsu's Office of the Comptroller of the Currency (OCC) seeking "documents and communications involving the de-banking of crypto firms in the United States."
Blockchain Association head of policy Jake Chervinsky tweeted:
"There are troubling reports of crypto companies having their bank accounts closed, often with no notice and no explanation. They've struggled to open new accounts too. This disturbing trend suggests that regulators are trying to cut crypto entirely out of the banking system."
"It wouldn't be the first time regulators saw an opening in a crisis to achieve a political goal by other means."