Castle Island Ventures partners believe that Silvergate's collapse is primarily due to regulatory pressure, rather than a liquidity crisis

ChainCatcher news, Castle Island Ventures partner Nic Carter stated that the intervention of U.S. regulators forced Silvergate Bank to voluntarily liquidate, otherwise the bank could have survived. Carter pointed out that the Biden administration had previously required Silvergate to limit cryptocurrency deposits to 15%, or face severe consequences. This move is seen as "Kill Switch 2.0," which aims to undermine banks that support cryptocurrency through covert rules, weakening the industry's development.

Carter also noted that Silvergate's decision to voluntarily liquidate instead of entering the FDIC receivership process is "questionable," a situation that has occurred only a few times in the past 30 years.

Carter believes that Silvergate's collapse is more due to regulatory pressure than a liquidity crisis.