US Treasury Undersecretary for Domestic Finance, Nellie Liang, has stated that the crypto industry wasn’t a primary cause of the failure of Silicon Valley Bank and Signature Bank. During a House Financial Services Committee hearing, Liang rejected the idea that digital assets should be held accountable for the banks’ runs. However, when asked if crypto had indirectly played a role, she noted that Signature Bank was particularly active in the sector. Federal Deposit Insurance Corp. Chairman Martin Gruenberg had earlier stated that around 20% of Signature’s deposit base was tied to crypto customers at the end of 2022. The banks’ regulators attributed their failures to business risks that weakened their resilience.
