Powell crypto and Silvergate
As short over $780M postioned against Silvergate regulation for crypto would come faster then we think
Differences regarding crypto currencie's future has been heard many times when the crypto market was bearish and encouraged by speculators.
Powell has clarified his position regrading the such :
“We don’t want regulation to stifle innovation in a way that just favors incumbents and that kind of thing. But, like everyone else, we’re watching what’s been happening in the crypto space and what we see is quite a lot of turmoil, we see fraud, we see a lack of transparency, we see run risk.”
Giving this satement the crypto market can breath easy.
The central USA bank doesnt want to stop the crypto market and technology to be developed as only mentioned the risks for using crypto currency-
“We see in crypto activity lots of things that suggest that regulated financial institutions should be quite cautious in doing things in the crypto space."
Crypto currency is marching now quickly right after the collapse of FTX to regulation.
Silvergate collpase is not contributing crypto's market stability when it stocks plunged by 98% and Short positions are opened so far with $780M after announcing on early March that shes is in decline ever since November 2022.
After FTX collapse weighs on the bank accompanied by client withdrawal.
Silvergate started investing in Bitcoin on early 2013 with a leading of her CEO Alan Lane.
This move has paved her way to give service to clients in the crypto market.
Silvergate revealed that she had to sell assets in a massive discount in order for him to be able to revive and inject cash into it as they are facing a financial crisis over dramatic losses.
FDIC thinking on ways to help Bank as the white house is also aware for the situation as president Joe Biden called the Congras to take action in this area said Karine Jean-Pierre and added that Biden administration is monitoring Silvergate Bank's.