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


Daniel J. Macy/Shutterstock, modified by Blockworks


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 day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter now.

Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief.

Can’t wait? Get our news the fastest way possible. Join us on Telegram and follow us on Google News.


upcoming event

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. This year’s event will be held in our nation’s capital, where industry leaders, policymakers, and institutional experts will come together to discuss the latest developments and challenges in the ever-evolving world of cryptocurrency. […]

upcoming event

MON - WED, SEPT. 11 - 13, 2023

2022 was a meme.Skeptics danced, believers believed.Eventually, newcomers turned away, drained of liquidity and hope.Now, the tide is shifting and it’s time to rebuild. Permissionless II is the brainchild of Blockworks and Bankless. It’s not just a conference, but a call […]

recent research

Curve's Stablecoin and Lending Market


AMMs are at the root of everything elegant and useful in DeFi.That's why Curve put LLAMMA at the center of its lending protocol.



Criminal behavior will get you to the bottom of this list


As markets teeter with uncertainty, both gold bugs and bitcoin aficionados are perking up, spurred by murmurs of a potential change in policy


OKX has also filed to become a Digital Asset Service Provider in France, which could take up to six months, according to the company


Several firms have sought to launch leveraged bitcoin futures products, and one such company intends to launch its proposed ETF on June 13


While the rest of the crypto world is focusing on frivolous non-issues, Brazil is where developers could actually make a difference


Following community backlash, Metaplex promptly back-pedaled from initial plans, removing some, but not all of the proposed fees