The recent banking crisis took away three of the most crypto-friendly banks in the United States. These are Silvergate, Signature and Silicon Valley Bank. In the same period, First Republic Bank, a traditional bank, was also in crisis. But unlike the other three, she did not sink. For the boss of Gemeni, it’s anything but a coincidence.
Do US regulators practice favouritism?
While things seem to be settling down, the storm that shook the banking industry is still making headlines. This Thursday, April 27, Cameron Winklevoss, the CEO of the crypto exchange Gemini spoke on the subject. An opportunity for the leader to deliver his interpretation of the management of the crisis by American regulators.
For the manager, they were completely wrong in their management of the situation. In thinly veiled terms, he accuses regulators of failing to save procrypto banks from bankruptcy. In any case, not up to the powers that are theirs.
His intervention suggests that the successive sinking of Silvergate, Signature and Silicon Valley Bank is in fact their fault. Would he be right? The answer is not settled. We do know, however, that US regulators twiddled their thumbs instead of trying to pull these investment banks out.
Such was not their approach concerning the First Republic Bank. Also entangled in a crisis, the latter nevertheless benefited from the support necessary to maintain itself. Coincidentally, US regulators flew to the aid of the financial institution.
Could this be a blatant sign of favoritism on the part of regulators? Certainly, according to Winklevoss. For him, it is frustrating to realize that if First Republic Bank had been a crypto bank, it would have been “murdered” since several weeks.
It must be said that the shock opinion of the head of Gemeni revives the debate on the regulation of the crypto market. If all the stakeholders agree that it must be regulated, the approach to get there is contested. This, in the same way as the regulators themselves.
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