FDIC Chair Grilled Over Crypto-friendly Bank Takeovers

Calls are growing for transparency over how the FDIC assumed control of crypto-friendly banks Signature and Silicon Valley Bank

article-image

Daniel J. Macy/Shutterstock, modified by Blockworks

share

Around $4 billion in deposits tied to Signature Bank’s crypto business are set to be returned next week amid growing scrutiny around the Federal Deposit Insurance Corporation (FDIC).

During a Financial Services hearing on Wednesday, FDIC chairman Martin Gruenberg fielded questions over his agency’s handling of the recent US banking crisis, including its takeovers of Signature and Silicon Valley Bank.

Pro-crypto Congressman Tom Emmer asked Gruenberg whether the FDIC plans to sell intellectual property tied to Signet, Signature’s blockchain-powered private money network utilized by major crypto firms such as Kraken.

“I believe that’s already been sold out of the bridge institution, Congressman,” Gruenberg responded. Emmer later rebuffed the chairman’s response in a tweet.

The FDIC and other US regulators moved to shut down Signature and Silicon Valley Bank earlier this month over concerns of risks to the US banking system, just days after Silvergate opted to shutter.

All three serviced crypto clients in one way or another.

Loading Tweet..

Crypto insiders demand FDIC scrutiny

The FDIC sold Silicon Valley Bank’s deposits to First Citizens Bank earlier this week.

Emmer pressed Gruenberg on his assertion that the sale included assets or liabilities tied to crypto-related firms.

“Gruenberg claims that all deposits from [Silicon Valley Bank] were assumed by First Citizens. But I am almost certain that’s not true,” Nic Carter, co-founder at venture capital firm Island Castle Ventures, tweeted.

Emmer and the FDIC did not immediately respond to requests for comment.

Others took umbrage with the hearing’s apparent focus on Silicon Valley Bank, rather than the FDIC’s action against Signature. 

Barney Frank, former House Financial Services Committee chair and Signature director, had previously alluded to the bank’s solvency even as the FDIC took control.

Research unit Delphi Digital’s general counsel Sarah Brennan tweeted: “Insane that there wasn’t a significant discussion on this. I thought this was a fact-finding hearing but was used for mostly grandstanding… business as usual.”


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
  • Supply Shock: Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.jpg

Research

Bluefin possibly stands at an inflection point. The token is near an all-time low yet the protocol’s spot volume market share and derivatives exchange usage have been increasing month over month since its November launch. Given its current market position and the upcoming upgrades (for both Bluefin and SUI), there may be upside potential before the increased supply growth in December. However, strong opposition from existing competitors (like Cetus and Suilend), as well as new entrants (like Aftermath), pose key challenges to Bluefin’s medium-term success.

article-image

Top Committee Democrat Sen. Elizabeth Warren in her opening statement accused Atkins of “helping billionaire CEOs like Sam Bankman-Fried”

article-image

Introducing garbled circuits for enhanced privacy and regulatory compliance

article-image

Ross Ulbricht was a freedom maximalist building freedom tech, powered by Bitcoin

article-image

Solana validators can reap benefits including payments, votes and community clout

article-image

Sponsored

WalletConnect is cementing itself as the essential connectivity layer, ensuring wallets remain the entry point for billions of users

article-image

According to a legal filing, Galaxy Digital helped boost the price of LUNA while quietly selling its tokens