A crypto-advocacy group in the US called the Blockchain Association has called on the regulators for information on the “de-banking of crypto firms.” Moreover, the information arrives following the closure of Signature Bank, Silicon Valley Bank, and Silvergate.
According to a report from Cointelegraph, the group “submitted Freedom Information Act requests,” following regulatory action taken again the banks. Subsequently, all three banks had ties to the crypto industry, as the FDIC is reportedly ensuring Signature Bank is sold to an entity with no ties to the crypto industry.
Blockchain Association Seeks Answers on Crypto Bank Closures
The collapse of Silicon Valley Bank last week infused the financial sector with renewed panic. Followed closely by the collapse of Signature Bank, the banking sector is reeling from the largest banking closures since the financial crisis of 2008. Conversely, the crypto industry is observing clear action taken against their access to traditional banking.
Now, the Blockchain Association is calling on regulators for information on the “de-banking of crypto firms,” through regulatory action. Specifically, Contelegraph notes the crypto-advocacy firm is calling on the Federal Reserve, FDIC, and OCC.
In a notice issued on March 16, the group made known their submission of a Freedom of Information Act request. Specifically, to the three entities closely connected to the banking closures. Of those, are the Fed who executed the bailout of SVB depositors, and the FDIC, who took on the bank as it entered receivership.
The report notes the Blockchain Association’s concern that the actions of the regulators “improperly contributed,” to the bank’s subsequent collapse. Additionally, Blockchain Association CEO Kristin Smith stated her belief that crypto companies, “should be treated like any other law-abiding business,” in the United States.
“BA 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,” the association stated. “A crisis that long-term crypto opponents have rushed to blame, incorrectly, on the technology.”