Here’s today’s blockchain tipsheet… prefer it by email? Sign up here.
On Monday, American Banker continued its look into the troubles for fiat/crypto rails provider Silvergate Capital Corporation and something called “brokered deposits,” a.k.a. “hot money.” Dennis McFadden of Better Markets, a DC-based organization with interests in financial markets, offers his opinion to AB’s Claire Williams: “Like water seeping into the cracks of a foundation, crypto companies have been relentless in attempting to penetrate the core of the banking business for years and this appears to be one of the cracks.” Read more (subscription). And visit the FDIC to read more on brokered deposits.
McFadden’s LinkedIn profile says that he was part of the Biden-Harris Transition Federal Reserve, Banking and Securities Agency Review Team in addition to past senior staff roles with three Democratic Senators.
Also, in early January, he penned an op-ed for the Financial Times which offered support for the work of the SEC in 2022 while simultaneously delivering a scathing indictment of the CFTC due to the FTX implosion. Read it.
need banking partner
Cryptocurrency exchange Binance is suspending US Dollar bank transfers beginning February 8 according to notices sent to customers and reported by The Wall Street Journal. A spokesperson says the suspension was expected to last a “couple weeks” until a new banking partner could be established. No other reason was given as to why they lost their current unnamed partner. Last month, The Washington Post reported that Binance was “part of a long-running investigation into potential violations of money-laundering rules.” The U.S. attorney’s office for the Western District of Washington in Seattle is involved. Read more.
Continue reading “Brokered Deposits Bedevil; DC Goes On The Road”