President Joe Biden has promised to take action against those responsible for the failure of Silicon Valley Bank (SVB) and Signature Bank, assuring the public that their deposits are safe.
On March 12, the New York District of Financial Services took over Signature Bank, a crypto-friendly bank that the Federal Reserve closed to protect the US economy and strengthen public confidence in the banking system.
Biden tweeted that he was “firmly committed” to holding those responsible for the banking collapses “fully accountable,” adding that he would provide more details in an address on March 13. U.S. politicians, including Senator Sherrod Brown and Representative Maxine Waters, have also praised the regulators’ actions.
U.S. Securities Exchange Commission Chairman Gary Gensler has used the opportunity to reinforce the agency’s pursuit of wrongdoers, stating that it will investigate and bring enforcement actions if it finds any violations of federal securities laws.
The temporary depegging of Circle’s USD Coin to as low as $0.88 on March 11 was triggered by the closure of SVB, as $3.3 billion of Circle’s $40 billion USDC reserves are held by SVB. However, USDC is almost back to $1 after the Federal Reserve confirmed that all customer deposits at Signature Bank and SVB will be made in “whole.”
