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:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

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.

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

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

Swiss regulator Gespa is assessing whether FIFA’s tokenized ticket sales for the 2026 World Cup violate gambling laws

by Blockworks /
article-image

The deal gives Ondo Finance SEC-registered broker-dealer, ATS, and transfer agent licenses to operate regulated tokenized securities markets

by Blockworks /
article-image

Ethereum and Solana funds mark industry first as Grayscale adds staking to spot crypto products

by Blockworks /
article-image

US bitcoin ETFs that seen more than $2.2 billion of net inflows over the last four trading days

by Blockworks /
article-image

More than 75 million U.S. Galaxy owners gain integrated Coinbase One access through Samsung Wallet, with global rollout planned

by Blockworks /
article-image

The central bank signed agreements with firms for fraud, payments, and app services ahead of a potential launch

by Blockworks /