Signature Bank FDIC Reportedly Raises Demand for Buyers to Quit Crypto Business

Signature Bank is on the market after being shuttered by New York state regulators on Sunday, but any potential buyer reportedly has to agree to a major caveat: no involvement in the crypto business. Amid the instability in the US banking sector, the United States Federal Deposit Insurance Corporation (FDIC) has reportedly now made a decision against the crypto industry. This comes as potential buyers circle the failed lender.

According to a Wednesday report from Reuters, the FDIC is mandating that they agree to give up the bank’s crypto business. Now, according to the latest news shared by two anonymous sources with Reuters, the Federal Deposit Insurance Corporation (FDIC) has asked the buyers of Signature to abandon any crypto business ties as a condition of acquisition.

Initial reports that the FDIC was forcing Signature Bank's buyer to abandon crypto activities appeared to confirm suspicions that regulators targeted the bank because it was involved in the cryptocurrency market. Regulators at the Federal Deposit Insurance Corporation (FDIC) are reportedly imposing a notable requirement for all interested buyers of failed lender Signature Bank: they must agree to cease all crypto-related activities.

The FDIC initially denied reports that prospective buyers of Signature Bank would be required to give up their crypto business ties as part of the acquisition process. However, the new reports, citing anonymous sources, suggest a clear shift in the FDIC's stance, indicating a deliberate effort to distance Signature Bank from the volatile cryptocurrency sector. This decision raises questions about the future of crypto-friendly banking and the potential for further regulatory scrutiny.