ChainCatcher news, Coinbase announced on Thursday that it will file a lawsuit against the U.S. Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC) after failing to obtain information under the Freedom of Information Act (FOIA).Coinbase hired the consulting firm History Associates Inc. to submit the FOIA request and filed a lawsuit on Thursday in the U.S. District Court for the District of Columbia, targeting the SEC and FDIC, accusing the federal financial regulators of attempting to sever the ties between the cryptocurrency industry and the banking sector. The FOIA request was made under the Freedom of Information Act, which allows the public to request records from any federal agency.

ChainCatcher news, according to The Block, based on a statement released by the White House on Thursday, U.S. President Joe Biden announced the nomination of Commodity Futures Trading Commission (CFTC) Commissioner Christy Goldsmith Romero to lead the Federal Deposit Insurance Corporation (FDIC), and nominated CFTC Commissioner Kristin Johnson to serve as Assistant Secretary for Financial Institutions at the Treasury Department.Both Democratic CFTC commissioners have urged the agency to issue rules or guidelines to protect consumers and address conflicts of interest in the cryptocurrency space.Romero has warned that there is a "contagion risk" in the cryptocurrency market and compared the industry to the financial crisis of 2008. Romero also sponsored the CFTC's Technology Advisory Committee, which voted earlier this year to submit a report to the commission calling for government and industry efforts to understand decentralized finance.Kristin Johnson stated last year that the Commodity Futures Trading Commission should "immediately establish regulatory standards for asset custody." The Biden administration is pushing for the first nomination hearings to begin in the week of July 8.

ChainCatcher news, according to CoinDesk, the White House is expected to nominate CFTC Commissioner Christy Goldsmith Romero as the next chair of the Federal Deposit Insurance Corporation (FDIC) and nominate Kristin Johnson for a senior position at the Treasury Department.

ChainCatcher news, sources say that the White House is preparing to select Christy Goldsmith Romero, a senior official at the U.S. derivatives regulatory agency, to lead the reform efforts at the Federal Deposit Insurance Corporation (FDIC).Sources indicate that the government has not yet made a final decision on this, and an announcement could be made as early as this week.

ChainCatcher news, according to Cointelegraph, Martin Gruenberg, the chairman of the Federal Deposit Insurance Corporation (FDIC), will resign due to recent scandals involving the FDIC.It is reported that during his tenure, Martin Gruenberg pushed to prevent banks from holding crypto deposits or providing banking services to crypto companies. In 2022, he also compared crypto assets to high-risk financial innovations such as subprime mortgages and mortgage-backed securities that led to the 2008 financial crisis in a speech.The FDIC is an independent U.S. government agency that provides insurance for depositors in U.S. commercial banks and savings banks.

ChainCatcher news, according to Decrypt, Binance.US today notified its users that the cryptocurrencies they hold on the exchange are no longer insured by the Federal Deposit Insurance Corporation (FDIC). The updated terms of service state that users must first convert their dollars into stablecoins or cryptocurrencies before they can withdraw.

ChainCatcher News, the Federal Deposit Insurance Corporation (FDIC) released its 2023 Annual Bank Risk Assessment Report on the 14th, and for the first time this year, included a separate section on the risks of crypto assets.The report states that the FDIC has recognized through its normal regulatory processes the growing public interest in activities related to crypto assets, but that these activities may pose new and complex risks to the U.S. banking system that are difficult to fully assess. Some key risks include the uncertainty surrounding the legal status of cryptocurrencies, the potential for fraud, and the contagion and concentration risks that may arise due to the interconnectedness of crypto businesses. Additionally, the sensitivity of stablecoins to runs may expose banks holding stablecoins to the risk of deposit outflows.

ChainCatcher News, the investigation by the Federal Deposit Insurance Corporation (FDIC) into the collapse of Signature Bank found that its cryptocurrency deposits posed risks. Before its collapse, Signature Bank managed $110 billion in assets, with nearly all deposits related to digital assets being uninsured.The FDIC stated that the management of Signature Bank did not understand the inherent risks of uninsured deposits and was not prepared for a bank run. (Source link)

ChainCatcher News, the Federal Deposit Insurance Corporation (FDIC) has issued a consent order to the crypto-friendly Cross River Bank for "unsafe or unsound banking practices." Cross River Bank is a venture capital-backed bank in New Jersey that has business dealings with major crypto companies like Coinbase and Circle.The 34-page consent order states: "The FDIC has considered this matter and determined that the bank engaged in unsafe or unsound banking practices due to its failure to establish and maintain internal controls, information systems, and prudent credit underwriting practices, related to compliance with applicable fair lending laws and regulations. The bank neither admits nor denies."A spokesperson for Cross River Bank stated that the order is the result of a "standard review of all aspects of the bank's lending processes" conducted two years ago. "We had already identified areas for improvement prior to the examination, and the examination identified additional areas. Since then, we have actively made significant improvements to fair lending and other initiatives, including investments in technology and personnel. Many improvements are either completed or will be completed in the coming months," the spokesperson said in a statement to The Block. The bank is "committed to working with the fintech community" and describes itself as a "transparent, compliant, fair, and responsible lending model." (source link)

ChainCatcher news, citing sources from Reuters, reports that the Federal Deposit Insurance Corporation (FDIC) is preparing to place First Republic Bank under bankruptcy management.The source stated that U.S. banking regulators have decided that the situation of this troubled regional bank has deteriorated, and there is no more time to seek assistance from the private sector. The source requested anonymity as the matter is confidential. Representatives from First Republic and the FDIC did not immediately respond to requests for comment. (source link)

ChainCatcher News: The report from the Federal Deposit Insurance Corporation (FDIC) indicates that the failure of Signature Bank was due to mismanagement and the "contagion effect" from the collapses of Silicon Valley Bank and Silvergate Bank. The FDIC stated that Signature Bank heavily relied on uninsured deposits and lacked strong liquidity risk management measures, overall demonstrating poor risk management. Additionally, the bank run triggered by the failures of other banks exacerbated the situation. Furthermore, Signature Bank's services to the crypto industry were also considered a major risk.The FDIC noted that shortly after the New York State Department of Financial Services (NYDFS) took over Signature Bank in March, the FDIC began reviewing its oversight of the bank. Although the industry claims that Signature failed specifically due to its services for crypto clients, NYDFS head Adrienne Harris has repeatedly stated that the bank had other issues.Moreover, the Federal Reserve and the Government Accountability Office (GAO) released their respective assessments of Silicon Valley Bank and Signature Bank, with the Federal Reserve attributing the collapse of Silicon Valley Bank to a series of mismanagement issues, while factors such as interest rate hikes and liquidity risks further worsened the situation. The GAO pointed out that Signature had "reduced its exposure to crypto deposits" in the 12 months prior to its failure. Silicon Valley Bank was affected by rising interest rates, while Signature Bank had exposure in the digital asset sector. These banks failed to adequately manage deposit risks.All three reports highlighted that the lack of action from federal regulators was a contributing factor, stating that banking regulators could have taken action earlier to request more information or otherwise manage the banks and their risks. (source link)

ChainCatcher news, the Federal Deposit Insurance Corporation (FDIC) has notified cryptocurrency clients of the failed Signature Bank that they must close their accounts and transfer their funds by April 5.It is reported that Flagstar reached an agreement with U.S. regulators on March 19, and Flagstar Bank will take on nearly all of Signature Bank's deposits and part of its loan portfolio. (source link)

ChainCatcher news, according to testimony related to the U.S. Senate hearing, Martin Gruenberg, chairman of the Federal Deposit Insurance Corporation (FDIC), stated that an investigation is underway into the actions of the leaders of Signature Bank and SVB Bank, holding them accountable for the banks' failures, and detailing their mismanagement and the risks of dangerous business concentration. (CoinDesk)

ChainCatcher news, according to a press release from the Federal Deposit Insurance Corporation (FDIC), New York Community Bank's wholly-owned subsidiary Flagstar Bank will accept all deposits and certain loan portfolios held by the former Signature Bank (Signature Bridge Bank).It is reported that 40 former branches of Signature Bank will operate under Flagstar Bank starting on March 20. Except for depositors related to digital banking, all depositors of Signature Bridge Bank will automatically become depositors of Flagstar Bank, and all their deposits will continue to be insured by the FDIC. Flagstar Bank's bid does not include approximately $4 billion in deposits related to the former Signature Bank's digital banking business. The FDIC will provide these deposits directly to customers associated with accounts related to the digital banking business. (Source link)

ChainCatcher news, according to informed sources, Silicon Valley Bank (SVB) was first auctioned off on Sunday afternoon but ultimately failed, and the Federal Deposit Insurance Corporation (FDIC) is planning to attempt the auction again. According to the Wall Street Journal, regulators have designated SVB's failure as a potential threat to the financial system, thereby providing the FDIC with more options for selling the company, such as offering insurance to depositors above the $250,000 insurance limit and providing better terms.Previous report, the FDIC took over SVB last Friday and initiated the auction process, with final bids set to close on Sunday afternoon local time. (CoinDesk)

ChainCatcher News, the Federal Deposit Insurance Corporation (FDIC) announced that all deposits of Silicon Valley Bank (SVB) will be transferred to a bridge bank. Checks for Silicon Valley Bank (SVB) customers will be cleared, and loans will be paid.It is reported that the bridge bank has resumed normal operating hours, and the FDIC has appointed Tim Mayopoulos as the CEO of Silicon Valley Bank. (Jin Shi)

ChainCatcher news, citing informed sources from Bloomberg, reported that the Federal Deposit Insurance Corporation (FDIC) initiated an auction process for Silicon Valley Bank on Saturday night, with final bids due by Sunday afternoon. The FDIC aims to reach an agreement quickly, but no final decision has been made, and it is also possible that no agreement will be reached. Currently, the FDIC is selling assets and will provide some customers with uninsured deposits on Monday, with 100% protected deposits available when the Silicon Valley Bank branch reopens on Monday. (source link)

ChainCatcher news, the U.S. Treasury Department stated that some institutions have issues similar to those of Silicon Valley Bank. Currently, the Federal Deposit Insurance Corporation (FDIC) has a deposit insurance fund exceeding $100 billion, sufficient to cover all deposits of Silicon Valley Bank and Signature Bank. (Jin10)

ChainCatcher news, Mike Alfred, founder and managing partner of Alpine Fox LP, tweeted that the Federal Deposit Insurance Corporation (FDIC) has arrived on-site at First Republic Bank to determine the best way to protect depositors, considering the accelerated bank run that has reached a critical point; the developments are happening much faster than expected.Starting today (March 12), First Republic Bank has restricted outgoing wire transfers and will completely stop processing wire transactions by the end of the day. The bank's wire transaction processing wording has now changed to "Thank you for your transaction, we will get back to you as soon as possible." (source link)