Former Congressman Barney Frank – a democrat that served from 1981 to 2013 – explained that the recent seizure of Signature Bank was done on purpose by the federal government to give other banks the message that they cannot and should not go anywhere near digital currency assets.
Barney Frank Says the Takeover of Signature was Wrong
Frank believes that the takeover of Signature was a terrible move to make, and that it was nothing more than trying to make an example of the bank. He also said that despite a large wave of withdrawals that occurred not too long ago, this shouldn’t fool people, as the institution was already in federal control long before these withdrawals occurred. In an interview, Frank commented:
This was just a way to tell people, ‘We don’t want you dealing with crypto.’
If what Frank is saying is the truth, it’s a very scary thought, indeed. The idea that crypto is this much of a threat to federal regulators proves the space is getting much larger than anyone could have anticipated. It also suggests that the government has turned from a democracy into a bureaucracy. Regulators are clearly bothered by the digital currency space given it goes against everything the world of standard finance has set in stone.
Crypto offers traders and investors an opportunity to engage in monetary actions without having third parties, middlemen, and prying eyes checking out what they’re doing. There is a certain level of autonomy and independence that comes with engaging in crypto, and clearly, the standard monetary world doesn’t like that. Under its rules, traders cannot do anything without receiving permission first.
Crypto has become a huge damper on the financial authority the standard space has carried with it for so many years, and it’s obvious the concern and worry are getting larger.
Frank is the coauthor of the Dodd-Frank Act that allowed the government to monitor and engage in oversight of all major banks following the 2008 financial disaster. He’s also the former director of Signature Bank, remaining with the company until it was taken over by the New York Division of Financial Services.
He commented that while the bank’s former operators will “have no recourse,” he thinks things will change for the better when Signature is sold, which he believes is likely to be soon. He said:
I believe they’re going to get a very good price, proof that it was not a bank problem.
Keeping Things Steady?
New York Governor Kathy Hochul, in a recent statement, commented that the takeover of the bank was a maneuver designed to prevent something bigger and more drastic from happening. She said:
Our view was to make sure that the entire banking community here in New York was stable, that we can project calm.
