Will Taxpayers Really Escape From Bailing Out SVB Signature Bank Depositors?

1. Silicon Valley Bank and Signature Bank collapsed, affecting businesses, investors, and depositors.
2. Major stablecoins depegged from the US dollar due to SVB’s failure to transfer $3.3 billion.
3. President Biden vowed to hold the responsible parties accountable, but concerns about taxpayer burden and financial regulations remain.

On March 13, US President Joe Biden took to Twitter to address concerns surrounding the collapse of Silicon Valley Bank and Signature Bank. He assured the American people that their traditional financial system was now secure following the government’s intervention.

Read CRYPTONEWSLAND on google news

Thanks to actions we've taken over the past few days to protect depositors from Silicon Valley and Signature Banks, Americans can have confidence that our system is safe.

People’s deposits will be there when they need them – at no cost to the taxpayer.

— President Biden (@POTUS) March 13, 2023

Biden’s tweet also included a statement that taxpayers would not be responsible for bailing out SVB-Signature Bank depositors. This was in response to concerns raised about the potential burden on taxpayers.

The collapse of the two major banks and the subsequent depegging of stablecoins from the US dollar highlighted the need for stronger regulations and oversight in the financial industry. The incident also demonstrated the importance of stablecoins in the financial industry and the potential risks associated with their use.

It remains to be seen how the collapse of SVB and Signature Bank will impact the broader financial industry, but Biden’s reassurances may help to ease concerns about the stability of the traditional financial system. Nevertheless, the incident serves as a reminder of the importance of maintaining adequate reserves and transparency to avoid potential financial crises.

In other news, Jeremy Allaire, co-founder and CEO of Circle, states that Circle will launch its USDC operations this week. Monday morning will mark the beginning of Circle’s USDC operations. Due to Circle’s cooperation with Cross River Bank, it will be complemented with a new automated settlement.

Read also:

• CZ Warns Traditional Banks Are a Threat to Stablecoins After USDC Depegging
• Did the Collapse of Silicon Valley Bank Trigger a DeFi Disaster?
• SBF To Pay $250K, Bail, With Ankle Tag to Gain Freedom
• Nexo Agents Bail 1M BGN as Feds Hunt Corrupt Felons
• Circle Plans to Expand Workforce by 25% in 2023

disclaimer read more