FDIC to Return $4 Billion in Crypto Deposits Connected to Signature Bank by Early April, Says Chair

Nellie Liang, undersecretary for domestic finance at the US Treasury Department, stated that she did not believe that crypto "played a direct role" in the bank failures.

During the March 29 hearing, which was the second time Gruenberg, Liang, and Fed Vice Chairman for Supervision Michael Barr had addressed lawmakers following the collapse of three major banks in the United States, Gruenberg stated that Silvergate Bank had not appropriately managed risks that led to its failure.

Though some lawmakers and regulators have seemingly pointed to the banks’ ties to digital asset companies, many have criticized the association as being without merit.

Signature board member Barney Frank has claimed that the bank had no issues with solvency at the time of its closure, and officials wanted to send a "very strong anti-crypto message."