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IPFS News Link • Central Banks/Banking

Did FDIC ask Signature buyers to stop all crypto business?

•, Helen Partz

A United States Federal Deposit Insurance Corporation (FDIC) spokesperson has denied a suggestion that any buyer of Signature Bank would be required to divest crypto activities as part of a potential rescue plan.

A March 17 report from Reuters cited two sources that said that any buyer of Signature to give up all cryptocurrency business at the bank. However, an FDIC spokesperson told Reuters that the agency would not require divestment of crypto activities as part of any sale.

The spokesperson also pointed to prior comments from FDIC chairman Martin Gruenberg that the agency is not looking to prohibit any particular activity by banks, according to Reuters. 

The FDIC regulators have asked banks interested in acquiring failed U.S. lenders like Silicon Valley Bank (SVB) and Signature Bank to submit bids by March 17.