Crypto-friendly banks mismanaged traditional risks, FDIC head tells Senate hearing
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The United States Senate Banking Committee held a hearing March 28 on the regulatory response to recent bank failures. Officials from the Federal Deposit Insurance Corporation (FDIC), Federal Reserve and Treasury testified. FDIC chair Martin Gruenberg spoke about the causes of the failures of Silicon Valley Bank (SVB) and Signature Bank, including the role of digital assets, and the agency’s responses to the crisis. High levels of uninsured deposits and rapid growth were common factors in the bank collapses in March, Gruenberg said. Gruenberg’s narrative began with the closing of digital-asset-focused Silvergate Bank, announced on March 8, although that story
Key Highlights Mercury submitted an OCC national bank charter application and filed for FDIC deposit insurance. The company says it serves 200,000+ customers, generates in $650M annualized revenue, and has three years of GAAP profitability. Mercury named Jon Auxier as Chief Banking Officer and proposed CEO/President of the planned bank,…
The acting chair of the Federal Deposit Insurance Corporation (FDIC) is preparing new guidance for tokenized deposits and expects to introduce an application process for stablecoin issuers by the end of 2025. Key Takeaways: The FDIC plans to issue guidance on tokenized deposits and introduce a stablecoin application process by…