The New York State Department of Financial Services has clarified the role of crypto in the closure of Signature Bank, stating that digital assets were not the cause.

While concerns about systemic risks posed by the crypto-focused bank led to its closure, mainstream media wrongly blamed crypto. Speaking at a crypto industry conference, NYDFS Superintendent Adrienne Harris confirmed that the bank’s liquidity issues caused its downfall, not its digital asset clients.

The bank lacked liquidity management protocols to meet withdrawal requests, and it had a high percentage of uninsured deposits. Despite U.S. regulators heavily targeting crypto this year, Harris believes that the industry is not the root of all evil.

She highlighted the lack of maturity in Bank Secrecy Act-anti-money-laundering compliance and cybersecurity as areas that need improvement.