Bank

Biden

Impact

<ul>
  
 <li>Silvergate Bank’s collapse, framed as risky business, may stem from Biden's pressure to limit crypto deposits.</li>   
 <li>Nic Carter suggests “Operation Choke Point 2.0” targeted crypto banks, leading to Silvergate and others’ failures.</li>   
 <li>Regulatory pressures, not just market forces, pushed Silvergate into voluntary liquidation amid a shifting banking landscape.</li> 
</ul>   
<p>Silvergate Bank, a prominent participant in the cryptocurrency banking industry, underwent a notable bank run in December 2022 amid unrest in the industry. The institution made its voluntary dissolution announcement by March 2023.&nbsp;</p>   
<p>While the Government Accountability Office and mainstream media framed<a href="https://www.reuters.com/legal/litigation/silvergate-capital-enters-bankruptcy-after-crypto-banks-shutdown-2024-09-18/#:~:text=La%20Jolla%2C%20California%2Dbased%20Silvergate,a%20run%20on%20the%20bank." target="_blank" rel="noreferrer noopener"> Silvergate’s downfall </a>as a result of risky ventures in a volatile industry, fresh evidence suggests otherwise. According to blockchain expert Nic Carter, the Biden administration may have pressured Silvergate out of business.</p>   
<p>Newly released bankruptcy filings, interviews with insiders, and confidential sources allege that Biden administration officials forced <a href="https://cryptonewsland.com/silvergate-banks-sunset-complying-with-feds-order-to-wind-down/" target="_blank" rel="noreferrer noopener sponsored nofollow">Silvergate to cap its crypto deposits</a> at 15%. This mandate, Carter claims, made the bank's operations untenable. Moreover, the bank weathered the 2022 crisis, and its deposits were growing until these restrictions were imposed.</p>   
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   https://twitter.com/PirateWires/status/1839017860838076809 
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<h3 class="wp-block-heading" id="h-targeting-crypto-banks-the-impact-of-regulatory-pressure"><strong>Targeting Crypto Banks: The Impact of Regulatory Pressure</strong></h3>   
<p><a href="https://www.piratewires.com/p/inside-biden-admin-plot-to-destroy-silvergate-and-debank-crypto-for-good-nic-carter" target="_blank" rel="noreferrer noopener">According to Carter</a>, the Biden administration planned and carried out "Operation Choke Point 2.0," a coordinated attempt to cut off banks connected to the bitcoin business. Other banks that backed cryptocurrency, like Silicon Valley Bank and Signature Bank, failed in 2023 in addition to Silvergate. According to Carter, this regulatory assault may have triggered the broader regional banking crisis that followed.</p>   
<p>Additionally, Carter highlights Silvergate's decision to voluntarily liquidate, which he finds suspicious. He suggests the move wasn’t due to market forces alone but regulatory pressures. Moreover, the Federal Home Loan Banks had declined to renew Silvergate’s loans amid intense scrutiny from US Senators like Elizabeth Warren.</p>   
<h3 class="wp-block-heading" id="h-the-wider-impact-on-the-banking-sector"><strong>The Wider Impact on the Banking Sector</strong></h3>   
<p>Carter further notes that this regulatory pattern continues, affecting other banks like Customers and Cross River, which face heightened scrutiny for their fintech partnerships. The <a href="https://cryptonewsland.com/crypto-leaders-challenge-biden-administration-in/" target="_blank" rel="noreferrer noopener sponsored nofollow">Biden administration's actions</a>, he argues, not only disrupted the crypto banking sector but also contributed to a broader banking crisis.</p>   
<p>Significantly, as crypto balance sheets strengthened by 2024, the decision to limit Silvergate’s operations seems even more questionable. Consequently, Carter believes the administration's moves against Silvergate may have had far-reaching consequences, sparking one of the largest banking crises since 2008.</p> 
<p>The post <a href="https://cryptonewsland.com/bidens-regulatory-pressure-sparked-silvergates-collapse-amid-crypto-crisis/">Biden’s Regulatory Pressure Sparked Silvergate’s Collapse Amid Crypto Crisis</a> appeared first on <a href="https://cryptonewsland.com">Crypto News Land</a>.</p>

Biden’s Regulatory Pressure Sparked Silvergate’s Collapse Amid Crypto Crisis

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