Frank Sees Crypto as Common Element in New Bank Failures

Barney Frank said digital currency was a destabilizing factor in the financial system, leading to the closure of three crypto-friendly banks. He said the sector is hurting the banking industry but is not systemically problematic.

March 13, 2023 . 10:37 PM

1 min read

Barney Frank said digital currency was a new, potentially destabilizing factor in the financial system.
Signature Bank closed by New York state financial regulators, joining fellow crypto-friendly banks Silvergate Capital Corp. and SVB Financial Group's Silicon Valley Bank.
Frank said 2023 is not 2008 and the financial system is less vulnerable, but the crypto sector is hurting the banking industry.
Frank said regulators wanted to send a message to get people away from crypto and Signature Bank was the poster child.