According to TechFlow, on September 26, according to Cointelegraph, Castle Island Ventures partner Nic Carter said that if US regulators had not forced it to voluntarily liquidate, the former crypto-friendly bank Silvergate Bank would probably have survived the crisis. Carter believes that this is an attempt by the Biden administration to "cut off" the cryptocurrency industry.
“I believe Silvergate could have weathered the withdrawals and is on track to do so,” Carter wrote in a Sept. 25 article. Citing Silvergate’s recent bankruptcy filing and internal sources, he said the Biden administration is requiring the bank to cap crypto deposits at 15% or face closure.
Carter believes this confirms what he calls "Operation Choke Point 2.0," in which the government tried to prevent banks from holding crypto assets or servicing crypto companies during last year's banking crisis. He noted: "The government cracked down on the domestic crypto industry by secretly enacting rules against crypto banks, which triggered and exacerbated the 2023 banking crisis, the worst since the 2008 financial crisis."
Earlier news, Silvergate Capital Corporation Chief Administrative Officer Elaine Hetrick disclosed in the bankruptcy application that the "sudden policy shift" of regulators in early 2023 was the main reason for the closure of Silvergate Bank.