cross-posted from: https://exploding-heads.com/post/85304
It appears that these banks, especially Signature, were the victims of an opportunistic campaign to decapitate banks serving the crypto industry. Not only was the bank run opportunistically exploited by regulators to shut down Signature, but it may even trace its origins to Choke Point 2.0. Did the Biden Administration actually instigate the now-global bank run as part of a grievance campaign against the crypto space? If so, this represents a colossal scandal, and one that the Biden administration must be made to answer for.
The preponderance of public evidence suggests that Silvergate and Signature didn’t commit suicide — they were executed.
The Fed also made it abundantly clear that new crypto-focused bank charters like that of Custodia (a fully reserved model, immune to bank runs!) would be denied, which is exactly what happened at the end of January. Banking crypto firms wasn’t prohibited, just rendered extremely expensive and reputationally risky.