In the wake of the collapse of three major banks with ties to crypto firms, software engineer Molly White believes that companies now considering banking may have to face "shady" solutions.
Speaking at the South by Southwest (SXSW) symposium in Austin, Texas on March 14, titled "Bubbing the Web3 Bubble," White argued that crypto firms' growth in the wake of the collapse of crypto-friendly Signature and Silvergate banks The choice could metaphorically push them underground. White compared the situation to 2017 and 2018, when crypto projects were "difficult to bank" and institutional knowledge and acceptance was low.
“There are only a handful of U.S. banks that are really willing to accept crypto clients,” White said. “Since both Signature and Silvergate are excluded, I think this will have a very big impact on the crypto industry [which] still really needs access to traditional finance and US banking.” Many in and outside the space have claimed that the New York Department of Financial Services’ shutdown of Signature Bank was an overreach by the authorities due to the firm’s ties to crypto firms. Signature board member and former U.S. Rep. Barney Frank said U.S. government officials were trying to send a "strong anti-encryption message" by closing the bank, while New York regulators reportedly said Signature had failed to provide "reliable and consistent information" about its activities. data" .
The SXSW conference in Austin runs through March 19 and will feature a host of speakers from the cryptocurrency and blockchain space. Cointelegraph published an interview with activist and cybersecurity expert Chelsea Manning about how blockchain technology can be used to address artificial intelligence challenges.
