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<p>News broke on Sunday, March 12, when the U.S. government took control of Signature Bank. This move was made to prevent the spread of a wider financial crisis, with regulators acting swiftly and decisively to ensure the safety and stability of the both the American and global financial system.</p><h2 id="header-0">The Signet and SEN networks were powerful tools for both DeFi and TradFi</h2><p>Signature Bank was a crypto-friendly institution that provided valuable services to the cryptocurrency industry. Its blockchain-based Signet platform played a critical role in powering the 24/7 crypto market, allowing institutional investors to exchange crypto and fiat in real time. </p><p>This was a powerful tool for both sides, as traditional banking only operates 9-5pm Monday to Friday, whereas cryptocurrency is all day and night, throughout the year.</p><p>Together with the now defunct Silvergate bank&#39;s SEN network, these platforms were responsible for moving an impressive $2 trillion in and out of the digital asset market for several top tier crypto clients including Coinbase and Circle.</p><p>It also has to be noted that this is third crypto-friendly bank in America, to shut its doors this year. <a href="https://blog.cryptology.com/silicon-valley-bank-collapses-and-usdc-depegs/" rel="noopener noreferrer nofollow">Silicon Valley Bank imploded</a> in spectacular fashion earlier this month, with Circle&#39;s USDC stablecoin subsequently breaking from its $1 peg. </p><h2 id="header-1">Is the American government anti-crypto?</h2><p>While some have speculated that the U.S. government&#39;s decision to take control of Signature Bank was motivated by a desire to send an anti-crypto message, others have stated that regulators acted in the best interests of the financial system as a whole.</p><p>However with the collapse of Credit Suisse and forced takeover by its rival UBS, the worldwide banking system still seems to be on the brink of a financial meltdown. And let’s not forget, that Bitcoin was created in the wake of the 2008 financial crisis, with Satoshi Nakamoto inscribing within the code of Bitcoin’s genesis block a highly relevant newspaper headline from the day - “The Times 03/Jan/2009 Chancellor on the brink of the second bailout for banks.”</p><h2 id="header-2">Bitcoin and altcoins still rallied</h2><p>Despite the challenges facing the crypto industry, many in the community remain optimistic about its future. <a href="https://cryptology.com/trading/BTC_USDC" rel="noopener noreferrer nofollow">Bitcoin and many altcoins rallied</a> while the Credit Suisse story broke over the weekend. And while the closure of Silvergate&#39;s SEN system and the potential shutdown of Signature&#39;s Signet platform are certainly setbacks, the crypto industry has overcome similar hurdles in the past and will undoubtedly continue to innovate and forge new partnerships with traditional finance.</p><p>Overall, although the situation with Signature Bank is certainly unfortunate, and the American government and regulators are evidently waging a war against crypto on their shores, price action within the market suggests there’s little cause for concern.</p><p>Blockchain technology and the crypto industry as a whole is resilient. It will undoubtedly emerge from this situation even stronger than before.</p>

With Signature Bank entering liquidation, the loss of its Signet platform is bad news for crypto

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