NY Regulators Say Signature Possession Had Nothing To Do With Crypto

The comments counter former Rep. Barney Frank’s assertion that Signature’s collapse is due to crypto


PL Gould/Shutterstock.com modified by Blockworks


Contrary to recent public statements, the New York Department of Financial Services says its possession of Signature Bank over the weekend had nothing to do with its crypto dealings. 

NYDFS opted to hand over control of Signature to the FDIC because of concerns over the bank’s business operations and its ability to meet client needs, a spokesperson told Fortune on Tuesday. 

The comments counter former Rep. Barney Frank’s assertions. In a series of interviews Monday, Frank, who served as a Signature board member, said the bank’s struggles began during the FTX-fueled run. 

The NYDFS targeted Signature in an effort to make its opinions on crypto clear, Frank — who headed the House Financial Services Committee during the 2008 financial crisis — said.

Despite New York regulators denying that crypto had any role in Signature’s downfall, the current banking crisis could impact industry oversight and ensuing policy, experts say. 

“There is a split in terms of who policymakers say is at fault, leading to a growing partisan divide,” said Ron Hammond, director of government relations at the lobbyist Blockchain Association. “The fear among those in Congress is that this growing partisan push could trickle to other policy priorities of the banking committees that aren’t related to the current crisis. Stablecoins in particular come to mind.”

Plus, Congress’ agenda has just gotten a lot busier, according to Hammond. 

“There is concern the recent actions could push stablecoin legislation to later in the year as well as partisan politics seeping into an area that has been bipartisan from day one,” he said.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Templates.png


ZKPs enable efficient offchain transaction processing and validation, resulting in increased throughput and reduced fees. Solana's ZK Compression leverages ZKPs to minimize onchain storage costs, while Sui's zkLogin streamlines user onboarding by replacing complex key management with familiar OAuth credentials.


The crypto asset manager lowered its planned fee from 0.25% to 0.15%, undercutting its competitors


Plus, a look at planned ETH ETF fees and how they differ from their BTC counterparts


North Korea suspected in breach of Indian exchange’s multisig wallet


Plus, Sanctum’s CLOUD token has officially launched — but not without problems


It’s not yet clear whether Donald Trump is pumping bitcoin. But an unofficial memecoin is still seeing benefit.