Mar 07, 2023

White House “Aware” of Silvergate Turmoil, Monitoring Reports

The Biden Administration is “aware of the situation” at Silvergate, a major crypto firm that has recently run into significant issues, according to Press Secretary Karine Jean-Pierre. At a press briefing on March 6, she said that the White House has noted the troubles at the bank, but declined to go into specifics.

“This is a president that has repeatedly called on Congress to take action to protect everyday Americans from the risk posted by digital assets and he will continue to do so. We won’t speak to this particular company as we have not with other cryptocurrency companies, but we will continue to monitor the reports,” Jean-Pierre said.

Silvergate, known as a “crypto bank”, has been a key banking partner to a number of major crypto companies and projects. The uncertainty over the bank’s solvency began to spread at the start of March, after Silvergate delayed the filing of its annual 10-K report by two weeks. This document provides a comprehensive overview of a company’s business and financial condition.

The news of the delay prompted Coinbase to terminate its partnership with Silvergate on March 2, as the crypto exchange also alluded to concerns over the Department of Justice’s investigation into the firm over involvement in the FTX collapse. Several other crypto heavyweights quickly followed suit by either cutting ties or distancing themselves from the bank, including Circle, Paxos, Bitstamp, Galaxy, MicroStrategy, and Tether.

On March 4, Silvergate also announced that it was shutting down its digital asset payment network Silvergate Exchange Network due to “risk-based” concerns, leading to further speculation about the firm’s financials.

As a result, Silvergate’s stock price (SI) has plummeted roughly 60% since Mar. 1, while the total combined market cap of crypto has dropped around 5.5% to $1.072 trillion in the same time frame.

Economist and author of the Crypto is Macro Now newsletter Noelle Acheson suggested to CNBC on March 6 that if Silverbank were to file for bankruptcy, it could give regulators a far greater excuse to clamp down on crypto than before, given the bank’s ties to traditional finance.

“If Silvergate goes under then the regulators will be able to say ‘aha, systemic risk, we told you so.’ That will give them even more ammunition to go after crypto and increase their choke on fiat access for crypto businesses,” Acheson said.

The potential loss of Silvergate could have a major impact on the web3 space, as well as the promotion and marketing of NFTs. As a result, many crypto companies are looking to NFT marketing agencies to help them promote and sell their NFTs. These agencies specialize in creating strategies for marketing NFTs on social media platforms such as Twitter, and can help crypto companies reach a wider audience.

The Biden Administration has yet to comment on the potential impact of Silvergate’s troubles on the web3 space, but it is clear that the situation is being closely monitored. As the situation continues to unfold, crypto companies and NFT marketing agencies will be watching closely to see how it affects the industry.

Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.