BlockBeats news, September 26, according to Cointelegraph, Castle Island Ventures partner Nic Carter said that if it were not for the US regulators forcing it to voluntarily liquidate, the former crypto-friendly bank Silvergate Bank would probably have survived the crisis. Carter believes that this is an attempt by the Biden administration to “cut off” the cryptocurrency industry.

Carter wrote in an article on September 25: “I believe Silvergate could have survived the withdrawal of funds and is moving in this direction.” He cited Silvergate’s recent bankruptcy documents and internal sources that the Biden administration required the bank to set a cap on crypto deposits at 15%, otherwise it would face closure.

Carter believes this confirms that what he calls “Operation Choke Point 2.0” does exist, that is, the government tried to prevent banks from holding crypto assets or providing services to crypto companies during last year’s banking crisis. He pointed out: “The government cracked down on the domestic crypto industry by secretly formulating rules against crypto banks, which triggered and exacerbated the banking crisis in 2023, the worst since the 2008 financial crisis.”

Previously, Silvergate Capital Corporation Chief Administrative Officer Elaine Hetrick disclosed in the bankruptcy filing that the “sudden policy shift” of regulators in early 2023 was the main reason for the closure of Silvergate Bank.

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