Bank

Solana

United

April

The <a href="https://www.boston25news.com/news/regulators-close/BV6G2AGYMAPDDD4KVJAFPE5DEM/" rel="noopener noreferrer nofollow">shutdown of the Republic First Bank of Philadelphia </a>by the federal regulator has entered history as the first setback experienced by the US banking sector in 2024.&nbsp;
The Pennsylvania Department of Banking and Securities stepped in and seized the bank on April 26. Federal Deposit Insurance Corporation (FDIC) will be managing nearly all of the bank’s $4 billion in deposits and its $6 billion in total assets.&nbsp;
After the closure, the <a href="https://www.bnnbloomberg.ca/republic-first-closed-by-regulators-and-bought-by-fulton-bank-1.2065924.amp.html" rel="noopener noreferrer nofollow">32 branches of the Republic First Bank </a>in New Jersey, Pennsylvania, and New York reopened as branches of Fulton Bank starting on April 27. With the interest rates going up and the commercial real estate market being a bit unpredictable, this transformation is part of a bigger plan to make the regional bank more stable.
<h2 id="b-failure-of-traditional-banks-a-wake-up-call-to-crypto-assets-b">Failure of traditional banks a wake-up call to crypto assets?</h2>
The failure of the Philadelphia based bank has caused quite a stir not only in the banking community but also in the cryptocurrency world.&nbsp;
Crypto enthusiasts, Marius Martocsan, the CEO of Zesh,&nbsp; Pillage Capital, a crypto trader and, Crypto commentator Randi Hipper shared the same thoughts about the current situation and their sentiments is gearing people to see the bank’s failure as a big opportunity for digital currencies.
It’s quite interesting to note the timing of the Philadelphia-based bank collapse, as other regional lenders like <a href="https://thecoinrise.com/fdic-confirms-first-citizens-bank-as-new-owner-of-silicon-valley-bank/" rel="noopener noreferrer nofollow">Silicon Valley Bank</a>, <a href="https://www.cnbc.com/video/2023/03/08/silvergate-shutting-down-operations-and-liquidating-bank.html" rel="noopener noreferrer nofollow">Silvergate Bank</a>, had also struggled with similar challenges in the past which has put the <a href="https://www.aljazeera.com/amp/program/inside-story/2023/3/15/whats-the-impact-of-two-banks-failing-in-the-us" rel="noopener noreferrer nofollow">struggles of the sector on a spotlight.</a> It is said to believe that the pandemic has had a significant impact, causing commercial real estate vacancy rates to rise and making loan refinancing more difficult.&nbsp;
<h2 id="b-will-bank-failure-spark-crypto-surge-b">Will Bank failure spark crypto surge?</h2>
While it has been a tough time for the banking industry, the cryptocurrency market has given a mixed reaction after the disclosure of the event.&nbsp;
According to <a href="https://coinmarketcap.com/" rel="noopener noreferrer nofollow">CoinMarketCap</a>, Bitcoin dipped by 1.16%, trading at $62,715, and Ethereum dropped by 0.58%, trading at $3,095. Altcoins like Dogecoin and Solana experienced slightly steeper declines, with decreases of 2.88% and 1.79% respectively.
This bank failure is a big test for the FDIC’s insurance fund, costing $667 million. It highlights vulnerabilities in certain sectors of the banking industry. Also, FDIC’s quick response and acquisition by Fulton Bank show a strong regulatory framework. Some in the crypto community think repeated failures in traditional banking could drive interest in cryptocurrencies.
The post <a href="https://thecoinrise.com/crypto-community-buzzes-as-us-government-seizes-republic-first-bank/" rel="noopener noreferrer nofollow">Crypto Community Buzzes as US Government Seizes Republic First Bank</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Crypto Community Buzzes as US Government Seizes Republic First Bank

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