Original Compilation: Cecilia, bfrenz DAO
Original Compilation: Cecilia, bfrenz DAO
Last week, several major events happened one after another. The crypto-friendly bank Silvergate Bank was thundered, and the well-known bank in the Silicon Valley venture capital circle, Sillion Valley Bank (SVB), was taken over. Everyone must have seen it.
We summarized the latest developments on Monday, March 13th, China time, and how people in the circle commented on current events.
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latest progress
The Federal Reserve Board, Treasury Department, and the Federal Deposit Insurance Corporation (FDIC) issued a statement that starting Monday, depositors can withdraw all their funds, and any losses related to the bankruptcy of Silicon Valley Bank will not be borne by taxpayers.
Subsequently, Circle also released progress. On March 11, 2023, Circle published detailed information about USDC reserves, stating that 77% of the current reserves ($32.4 billion) are backed by short-term U.S. Treasury bonds. U.S. Treasury bonds are the most liquid assets in the world and are the direct responsibility of the U.S. government. These reserves are managed by BNY Mellon, while BlackRock is responsible for active liquidity and asset management. The cash portion of USDC reserves, 23% ($9.7 billion), is now primarily held by BNY Mellon.
CEO Jeremy Allaire tweeted: “We are pleased to see that the U.S. government and financial regulators have taken critical steps to mitigate the risks that extend from parts of the banking system. 100% of our deposits with Silicon Valley Bank are safe and will be banked tomorrow Available when open.
Circle’s USDC compliance measures will help bring more stability and confidence to the digital currency market. We will continue to monitor and update.
As previously shared, USDC liquidity operations will resume tomorrow morning when banks open. After the Signature Bank closure notice comes out tonight, we will not be able to process mint and redemption through SigNet, depending on the settlement with BNY Mellon. "
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Source https://twitter.com/jerallaire/status/1635059024050937856
Separately, HSBC bought the UK subsidiary of Silicon Valley Bank for £1. SPD Silicon Valley Bank, a joint venture between SVB and Shanghai Pudong Development Bank, said it was operating normally.
More worryingly, regulators ordered the closure of Signature Bank due to SVB's troubles.
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In a crisis, listen to what the bosses say?
Three crypto-friendly banks collapsed in one week, so where does US crypto go from here? Does it mean that the US encryption market regulation is not going well? This is a question of concern to everyone. Let’s take a look at what the bigwigs in the crypto circle have to say on Twitter:
“The closure of Silvergate, SVB, and Signature has created a huge void in the crypto-friendly banking market. There are many banks that could take advantage of this opportunity without taking the same risks as these three. The question is whether banking regulators will try to block it.”
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Source https://twitter.com/jchervinsky/status/1635062063583363072
-Ryan Selkis, founder of Messari
(He himself has been paying attention to Washington's attitude and policy towards crypto)
"To protect the future of America's encryption, we need to do these important things:
1) Provide legal clarity and political support for a regulated stablecoin (USDC)
3) A well-organized, multi-year campaign"
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“Now the federal government has clamped down on three of the largest banking partners in crypto, issued a “Wells Notice” to one of the top stablecoin issuers, attempted to suppress thousands of tokens, and effectively banned them through overreaching custody rules Raised crypto venture capital and hunted down its top global exchanges. Yet the market is up 10%. This industry is not going to die easily. It will be difficult if not impossible to beat for an idea whose time has come. Having said that , no one said the final BOSS (indicating supervision) would be an easy fight."
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Source https://twitter.com/twobitidiot/status/1635112021862785024
- Binance CZ
address
https://etherscan.io/address/0x 043 a 80999 cee 3711 d 372 fb 878768909 fbe 7 f 71 e 6 #tokentxns
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“Is it time for Binance to buy the bank? Not sure. Article is from last November.”
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Source https://twitter.com/cz_binance/status/1634437834579800064
"We can't trust banks. That's why we need Bitcoin."
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Source https://twitter.com/balajis/status/1634251170213662721
"If it's just one bank failing, it's a small thing. But we've just seen three fail - Silvergate, SVB and Signature. What brought them down was a combination of regulatory snuffing and bond devaluation. These are not natural deaths .The next step is to replace natural death with artificial life. The huge losses caused by the Fed printing money and raising interest rates will now be covered up by printing more money.”
"A large group of tech entrepreneurs and builders just realized why we need crypto. I wonder what they will do next?"
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"Silvergate, SVB, Signature, these are the banks. Don't let those people blame crypto."
Source https://twitter.com/RyanSAdams/status/1635058083071410176
Source https://twitter.com/RyanSAdams/status/1635106292628094977
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Wallet Tracking, How Did "Smart Money" Operate During the USDC Crisis?
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References
1. https://twitter.com/jerallaire/status/1635059024050937856
2. https://twitter.com/jchervinsky/status/1635062063583363072
3. https://twitter.com/twobitidiot/status/1635057830242979841
4. https://twitter.com/twobitidiot/status/1635112021862785024
5. https://twitter.com/cz_binance/status/1635131601884700674
6. https://twitter.com/cz_binance/status/1634437834579800064
7. https://twitter.com/balajis/status/1634251170213662721
8. https://twitter.com/RyanSAdams/status/1634892046447308800
9. https://twitter.com/RyanSAdams/status/1635058083071410176
10. https://twitter.com/RyanSAdams/status/1635106292628094977
