Investors are growing increasingly concerned about the financial stability of Silicon Valley Bank (SVB), a technology-oriented bank that caters to clients such as Sequoia and Andreessen Horowitz, both known for their support of cryptocurrency. The bank recently sold $21 billion worth of its securities holdings for a $1.8 billion loss to shore up its balance sheet, and it also raised $500 million from venture firm General Atlantic, with plans to raise another $1.75 billion in sales of its shares, for a total of $2.25 billion. 

However, despite these efforts, some investors remain concerned about the bank's financial position, particularly given the recent closure of the crypto bank Silvergate.

SVB is one of the top 20 largest banks in the United States, and its struggles have raised fears about the future of another US bank. However, the bank remains committed to its mission of supporting tech startups and venture capital firms, and it will be interesting to see how it navigates these challenging times.

According to a report from The Information on March 9th, SVB's chief, Greg Becker, advised investors to remain calm and assured them that the bank has sufficient liquidity to support its clients. However, he added that if rumours of the bank's instability spread, it could pose a challenge.

Many people have expressed concerns about the potential impact on SVB's clients if a bank run were to occur. However, founders and tech executives have taken to Twitter to show their support for the bank and urge others not to panic.

The recent developments in the cryptocurrency industry have caused a ripple effect, with major banking partners like Silvergate and SVB facing uncertainty. Just a day after Silvergate announced its decision to "wind down operations" and liquidate its crypto-friendly bank, SVB is now under scrutiny.

As the cryptocurrency industry continues to evolve, it is crucial for banking partners to stay ahead of the curve and adapt to changing regulations. The uncertainty surrounding SVB and Silvergate highlights the need for transparency and accountability in the industry. It is imperative for companies to maintain a strong financial footing and ensure the safety of their client's assets.

#silvergate #cryptocurrency #crypto2023 #marketupdate #Binance

Image Source Shutterstock.com

The United States-based crypto advocacy group Blockchain Association has called on financial regulators to provide information related to the potential “de-banking of crypto firms” in the wake of the failures of the Signature, Silicon Valley Bank and Silvergate banks. The Association has submitted Freedom of Information Act requests to the Federal Deposit Insurance Corporation, the board of governors of the Federal Reserve System, and the Office of the Comptroller of the Currency for documents and communications that could potentially show regulators’ actions “improperly contributed” to the collapse of the three banks.



Crypto firms “should be treated like any other law-abiding business” in the United States with access to bank accounts, according to Blockchain Association CEO Kristin Smith. The association is investigating “troubling allegations — including account closures and refusal to open new accounts — which have grown more concerning in the wake of this week’s banking crisis,” said the association, adding, “A crisis that long term crypto opponents have rushed to blame, incorrectly, on the technology.”



The recent banking crisis began with Silvergate’s parent company announcing on March 8 that it would “wind down operations” for the crypto bank. Silicon Valley Bank followed on March 10 with its own failure after a run on deposits, and the Treasury, Fed and FDIC announced the closure of Signature Bank on March 12. At the time, a joint statement from the regulators said the action against Signature was taken to “protect the U.S. economy by strengthening public confidence in our banking system.”



However, former U.S. Representative and Signature board member Barney Frank reportedly claimed the FDIC was sending a “strong anti-crypto message” in shutting down the bank, and some lawmakers are demanding answers. In response to these events, the Blockchain Association is pushing for transparency from regulators on their actions regarding the collapse of these three banks.



Crypto-friendly banks, such as Signature Bank, have been essential to the success of many cryptocurrency firms in the United States, including Coinbase, Paxos Trust, BitGo and Celsius. Prior to its closure, Signature was considered to be one of the largest crypto-friendly banks in the country.



Some in the space have suggested that federal regulators’ perceived attack on banks servicing crypto firms could force companies to turn to “shadier” options. The sudden collapse of these crypto-friendly banks has left many in the crypto industry feeling vulnerable and uncertain about the future of banking for crypto firms in the United States.



The Blockchain Association's call for transparency from regulators on their actions regarding the collapse of these banks is a crucial step towards ensuring fair treatment of crypto firms in the United States. The Association believes that crypto firms deserve access to bank accounts and should be treated like any other law-abiding business in the country.



As the crypto industry continues to grow and mature, it is essential for financial regulators to recognize the importance of crypto-friendly banks and the role they play in the success of crypto firms. By promoting transparency and fair treatment of crypto firms, financial regulators can help foster a healthy and sustainable environment for the industry to thrive.



In conclusion, the recent banking crisis in the United States has raised concerns within the crypto industry regarding the treatment of crypto firms by financial regulators. The Blockchain Association's call for transparency from regulators on their actions regarding the collapse of these banks is a step in the right direction towards ensuring fair treatment of crypto firms. As the crypto industry continues to grow and mature, it is essential for financial regulators to recognize the importance of crypto-friendly banks and the role they play in the success of crypto firms.

#BTC #crypto2023 #bankruptcy #BNB #silvergate

Welcome to the latest edition of MelegaSwap's weekly cryptocurrency news roundup. In our usual roundup, we bring you up to speed on the latest happenings in the dynamic and ever-changing world of digital currencies. This week, which spans from April 16th to 22nd, 2023, has been an exhilarating time for cryptocurrency enthusiasts, as the long-standing and enigmatic crypto regulator has faced a contentious session from United States lawmakers.

However, Bitcoin (BTC) experienced a significant drop below the $30,000 mark, while ether (ETH) similarly plummeted below its $2,000 threshold, which had only been achieved late last week. These drops can be attributed to a range of regulatory uncertainties and other fundamental factors. 

This week's updates include the launch of a new Euro-pegged stablecoin, the comprehensive crypto legislation adopted by the European Parliament, the forthcoming release of Nike's sneakers with non-fungible tokens (NFT), and the possibility of Gary Gensler, the Chair of the American SEC and a skeptic of cryptocurrency, being removed from his position.

As we continue to stay ahead of the curve, we are delighted to bring you all the latest developments every step of the way. Without further ado, let's dive in!

TOP STORIES THIS WEEK (APRIL 16-22 2023)

●      Societe Generale-Forge Joins the Stablecoin Race with Euro-Backed Digital Asset

●      EU Sets Standard Crypto Regulations with MiCA

●      Nike launches virtual sneaker collection "Our Force 1" as NFTs on .Swoosh platform.

●      Tribe Capital is reportedly considering reviving FTX

●      Bittrex and its former CEO charged by SEC for unregistered operations

●      Silvergate Bank in trouble as it faces class-action suit and multiple lawsuits

#EURO Societe Generale-Forge Joins the Stablecoin Race with Euro-Backed Digital Asset

Societe Generale-Forge (SG-Forge), a subsidiary of French bank Societe Generale, has launched EUR CoinVertible, a new euro-pegged stablecoin for institutional clients. The Ethereum blockchain-based stablecoin, with the ticker symbol EURCV, will only be available to Societe Generale's investors who have undergone Know Your Customer and Anti-Money Laundering procedures.  

However, the coin's centralized nature and "worst code" assessment has drawn criticism from researchers who analyzed its smart contract code. ERC-20 transfers of the stablecoin require authorization from an in-house registrar, which some experts argue is incompatible with the blockchain's decentralized ethics. Each transfer must be authorized in a separate ETH transaction submitted by the centralized registrar, causing concerns about the coin's security and potential impact on the broader cryptocurrency market.

EU Sets Standard Crypto Regulations with MiCA

The European Parliament has approved the Markets in Crypto-Assets Act (MiCA), marking a significant milestone for the crypto industry. This new legislation aims to establish clear regulations and harmonized rules for crypto assets at the EU level, providing legal certainty for the industry and investors. 

Moreover, the regulation will establish guidelines for digital asset token issuers' operation, structure, and governance, as well as offer rules on transparency and disclosure requirements for issuing and trading crypto. 

EU financial services commissioner Mairead McGuinness hopes the regulation will serve as a model for other countries, ensuring a robust global approach that safeguards consumers and financial stability.

#NFT Nike launches virtual sneaker collection "Our Force 1" as NFTs on .Swoosh platform.

Nike introduces its first-ever NFT sneaker collection called "Our Force 1" on the new .Swoosh platform. The virtual sneaker is based on Nike's iconic Air Force 1 design and will be available for purchase on May 10 via the .Swoosh marketplace. 

Early access to the sale on May 8 is granted through virtual "AF1 posters" airdropped to randomly selected .Swoosh users. This marks a significant move by Nike to capitalize on the NFT trend that has taken the art and fashion worlds by storm.

#FTX Tribe Capital is reportedly considering reviving FTX

Tribe Capital, a San Francisco-based investment firm that previously invested in FTX, is reportedly considering injecting more funds into the insolvent centralized cryptocurrency exchange. 

Sources familiar with the matter revealed that Tribe Capital is planning to lead a $250 million fundraising effort, with $100 million coming from the company and its limited partners. The venture capital firm is said to be interested in working with other investors to bring the struggling crypto firm back to life. 

While the talks are still in the early stages, sources say that Tribe Capital is optimistic about the potential for a successful revival of FTX. If successful, the exchange’s name would remain FTX.

#Bittrex Bittrex and its former CEO charged by SEC for unregistered operations

Crypto asset trading platform Bittrex and its former CEO, William Shihara, have been charged by the United States Securities and Exchange Commission (SEC) for operating an unregistered national securities exchange, broker, and clearing agency. 

Bittrex Global is also being charged for its operation of a single shared order book along with Bittrex. The SEC argued that six tokens traded on Bittrex, including OMG, Dash, and Algorand, are securities. However, the SEC has been criticized for claiming tokens are securities only at the time it files such complaints. 

#silvergate Silvergate Bank in trouble as it faces class-action suit and multiple lawsuits 

Silvergate Bank, a California-based bank that offered banking services to cryptocurrency clients, is facing three combined lawsuits from investors alleging that the bank assisted FTX, a cryptocurrency exchange, in fraudulently stealing their funds. 

The US District Judge for the Northern District of California, Jacqueline Scott Corley, consolidated the three separate lawsuits against Silvergate Bank, stating that they all shared common legal and factual questions. In February, four investors filed lawsuits, accusing the bank of knowingly supporting FTX's alleged inappropriate conduct. The bank had already disclosed plans to liquidate assets and shut down operations following a bank run in March.