Bank

Biden

when

Castle

Silvergate Bank, once a prominent player in the crypto-friendly banking sector, may have survived if not for pressure from U.S. regulators, according to Nic Carter, a partner at Castle Island Ventures. Carter suggested that <a href="https://thecoinrise.com/silvergate-is-liquidating-its-assets-as-it-wind-down-operations/" rel="noopener noreferrer nofollow">Silvergate’s forced liquidation</a> was part of a broader governmental effort to undermine the cryptocurrency industry.
In a recent <a href="https://www.piratewires.com/p/inside-biden-admin-plot-to-destroy-silvergate-and-debank-crypto-for-good-nic-carter" rel="noopener noreferrer nofollow">article</a> for Pirate Wires, Carter revealed that the Biden administration allegedly pressured Silvergate to cap its crypto deposits at 15%, or face severe consequences. This action, according to Carter, was part of what he terms “Operation Choke Point 2.0,” a coordinated effort to limit banking services for the cryptocurrency sector.
<h2 id="span-style-font-weight-400-crypto-companies-reliance-on-banks-span">Crypto Companies’ Reliance on Banks</h2>
“The government’s intent to decapitate the domestic crypto industry by targeting crypto-focused banks was clear, and it only worsened the <a href="https://thecoinrise.com/peter-schiff-blames-the-us-government-for-financial-crisis/" rel="noopener noreferrer nofollow">2023 banking crisis</a>,” Carter said. He stated that digital asset companies rely heavily on banks to manage deposits, process customer transactions, and handle operating expenses.
Silvergate, along with Signature Bank and Silicon Valley Bank, faced immense regulatory pressure throughout 2023. Carter highlighted the Federal Deposit Insurance Corporation (FDIC) and key lawmakers, such as Senator Elizabeth Warren, as being instrumental in forcing the closure of these banks.
The collapse of crypto exchange FTX only fueled regulatory scrutiny, prompting demands for the banks to disclose their involvement with crypto firms.
An insider from Silvergate told Carter that the bank had no choice but to comply with the 15% cap or shut down. “When your primary regulator threatens you, you comply,” the source said. This rule was never publicly discussed or formalized, but it left Silvergate with limited options.
<h2 id="span-style-font-weight-400-true-cause-of-silvergate-downfall-span">True Cause of Silvergate Downfall</h2>
Carter also questioned the bank’s decision to pursue voluntary liquidation rather than FDIC receivership, calling it “suspicious.” He noted that such actions have occurred rarely over the past few decades, raising doubts about the true cause of the downfall.
Despite the challenges, Carter <a href="https://x.com/nic__carter/status/1838999836286218257" rel="noopener noreferrer nofollow">argued</a> that Silvergate could have weathered the storm if the 15% limit had not been imposed. He pointed to the bank’s improving balance sheets as crypto markets rebounded in late 2023, suggesting that it was not a business failure, but rather regulatory interference that sealed Silvergate’s fate.
While acknowledging that Silvergate had room to improve its money laundering controls, Carter maintained that it didn’t deserve to be “harassed out of existence.”
Carter’s remarks come at a time when U.S. leadership, including Vice President <a href="https://thecoinrise.com/kamala-harris-pledges-u-s-leadership-in-blockchain-and-ai/" rel="noopener noreferrer nofollow">Kamala Harris, continues to emphasize the country’s dominance</a> in emerging technologies like blockchain and artificial intelligence.
The post <a href="https://thecoinrise.com/silvergate-banks-demise-a-regulatory-move-to-decapitate-crypto-industry-claims-exec/" rel="noopener noreferrer nofollow">Silvergate Bank’s Demise: A Regulatory Move to “Decapitate” Crypto Industry, Claims Exec</a> appeared first on <a href="https://thecoinrise.com/" rel="noopener noreferrer nofollow">TheCoinrise.com</a>.

Silvergate Bank’s Demise: A Regulatory Move to “Decapitate” Crypto Industry, Claims Exec

Table of Contents

TheCoinrise Media

Other articles published on Sep 26, 2024

DeFi Markets Brace for Volatility as $568 Million in Tokens Prepare to Unlock

Best Crypto Debit Cards 2024: Top Picks and Features

This SOL Whale Made Millions From Buying WIF at $0.1, Onchain Data Shows His Next Altcoins Under $1

Toncoin (TON) Price Looks Promising as Indicators Signal Imminent Short-Term Rally: Here’s the Ou...

South Korea Fines Worldcoin for Privacy Violations

Kamala Harris Publishes 80-Page Economic Plan Document – Does It Include Cryptocurrencies?

Join our free newsletter for daily crypto updates!