Adrienne Harris Defends Signature Bank Closure: A New Take on ‘Operation Choke Point’

Signature Bank’s Closure: What Really Happened?

Adrienne Harris, the superintendent of the New York Department of Financial Services (NYDFS), has stirred the pot by asserting that the dramatic shutdown of Signature Bank in March had no ties to its crypto dealings. In a lively discussion during the Chainalysis Links conference, she described the failure of the bank as nothing short of a “new-fashioned bank run.” Who knew running out of the bank like it was on fire could be fashion-forward?

Addressing the Crypto Connection

Despite rampant speculation, Harris labeled the notion of Signature Bank’s downfall being linked to its cryptocurrency exposure as “ludicrous.” It’s like blaming the latest trend in fashion on a bad hair day – it just doesn’t fit!

The Shadows of Operation Choke Point

In her speech, Harris dismissed claims that the government is targeting specific industries to cut off their access to banking services—a theory some dubbed “Operation Choke Point 2.0.” This operation originally ran from 2013 to 2017, putting the squeeze on banks associated with potentially dodgy businesses. So, what’s the new twist? According to Harris, it’s not the government pulling the strings but rather an unfortunate series of events hurting the once-celebrated relationship between big banks and digital assets.

The NYDFS’s Bold Move

Following the swift closure on March 12, NYDFS claimed it was acting in the best interests of the U.S. economy to shield it from “system risk.” Unsurprisingly, this wasn’t the only bank casualty in recent months, as both Silvergate and Silicon Valley Bank also met similar fates. Are we seeing a new trend in banking bravado or merely mismanagement in crisis?

Voices from the Fray

Notably, Barney Frank, a former House member and a board member for Signature, voiced his concerns, asserting that the bank was solvent at the time of the seizure. Furthermore, some lawmakers like Senator Michael Bennet have raised eyebrows over the bank’s decisions in engaging with crypto firms. Perhaps it’s time to have a grown-up conversation around risk and reward in the crypto age?

Looking Forward: What’s Next for Digital Assets?

As the dust settles, the future of digital asset oversight hangs in the balance. Will regulators strike a balance between protecting the economy and allowing innovative industries to thrive? Only time (and possibly a few more conferences) will tell!