What does the Silvergate collapse mean for crypto?
The recent collapse of crypto-friendly bank Silvergate will likely increase regulatory scrutiny on the ties between the crypto industry and the banking sector in the U.S. The collapse of crypto-friendly bank Silvergate will likley have a significant impact on the crypto ecosystem and its ties with the banking sector in the U.S. Earlier this week, the parent company of Silvergate Bank announced plans to wind down operations and liquidate the bank. The announcement came after the crypto -friendly bank had suffered 1$ billion worth of losses in the last quarter of 2022 as a direct consequence of the collapse of crypto exchange FTX, one of Silvergate’s main clients. Silvergate was one of the very few regulated financial institutions providing Banking services to crypto companies and exchanges. Its downfall will likely reinforce U.S. regulators' arguments that crypto poses a threat to the traditional financial system. Earlier this year, the U.S. Banking regulators had already iss...
