FDIC Denies Signature Buyer Crypto Stop

The regulator was reported by Reuters to demand that prospective Signature buyers cease all crypto-related activities at the bank.

Man talking to the crowd about Bitcoin, art generated by Midjourney

The Federal Deposit Insurance Corporation (FDIC) has reportedly stated that any institution interested in acquiring now-defunct Signature Bank must sever its ties to the crypto industry. The spokesperson for the regulator denied this suggestion.

The news, which Reuters broke on Wednesday, was received by the crypto community as confirmation of “Operation Choke Point 2.0,” a theory first introduced by venture capitalist and crypto advocate Nic Carter, who alleged that financial regulators are engaged in a coordinated effort to cut cryptocurrencies from the banking system.

A March 17 report from Reuters cited two people familiar with the matter who asked not to be identified due to the confidential nature of the case. However, in an email to CoinDesk, FDIC representative stated that “the receivership does not end until all the bank’s assets are sold and all the claims against the bank are addressed, and the acquirer decides the conditions of their bid.”

Signature buyer will tell the FDIC “what assets and liabilities from the failed bank it is willing to take,” the spokesperson added.

Reuters reported that FDIC told the news agency that it “would not require divestment of crypto activities as part of any sale.”