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

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.png

Research

Pipe Network is a decentralized content delivery network (dCDN) that replaces the sparse, capital intensive data center footprint of traditional CDNs with a permissionless mesh of independent node operators. By orchestrating under-utilized resources that already exist at the edge, rather than purchasing or leasing thousands of servers, Pipe slashes capital intensity while letting supply expand autonomously in the places where bandwidth is scarcest and most expensive.

article-image

What if growth goes exponential while you’re hiding in gold and bitcoin?

article-image

While Compass Point analysts downgrade its Circle price target, Jefferies initiates Galaxy coverage with ‘buy’ rating

article-image

Friday News potpourri: Here’s what’s shaping up across Bitcoin, Ethereum and beyond.

article-image

A little inside baseball about crypto news

article-image

Dragonfly’s Rob Hadick and Empire’s Jason Yanowitz talked about the market and what they’re watching

article-image

For just $54, you, too, could send a memecoin 500% higher