Cameron Winklevoss, co-founder, and CEO of New York-based cryptocurrency exchange Gemini, accused US regulators of applying a double standard in dealing with First Republic Bank. If First Republic had become a “crypto bank,” it would have “killed it a few weeks ago,” according to Winklevoss.
It should be noted that the First Republic began facing “structural challenges” with its balance sheet at the same time that Silicon Valley Investment Bank and Silvergate Bank were closed or suspended by federal regulators.
Winklevoss’ statement is consistent with a recent series of letters written by three Republican members of the Financial Services Committee of the United States House of Representatives seeking additional information about possible joint activities against crypto businesses operating in US territory.
According to a CNBC report on April 26, First Republic advisers will now try to persuade major US banking institutions – which have handed over $30 billion to beleaguered companies – to provide additional financial assistance due to the government’s refusal to include banks on receivership. .
On March 8 and 10, Silvergate and Silicon Valley Bank were placed on government curatorship, respectively. According to advisers to First Republic, the current private market solution to corporate liquidity problems will keep banks open. Government curators, on the other hand, are referred to as a “closed bank” situation.
On April 26, Senior Fox News Correspondent Charles Gasparino told his 160,000 Twitter followers that the “private bailout” was being pushed by US Treasury Secretary Janet Yellen, who did not want to bail out depositors with government funds like they did with Silvergate and Silicon Valley Bank.
Things came to a head for the First Republic on Monday, April 23, when the bank revealed in its first-quarter earnings call that total deposits had fallen by more than $100 billion. The company indicated it would “pursue strategic options” to improve its financial position as soon as possible.
First Republic Bank shares have fallen more than 64% since Monday, plunging from $16.14 to $5.68 at the time of writing. As investors grow increasingly wary of centralized financial institutions, the failure of First Republic Bank is seen as providing an incentive for investing in Bitcoin and other cryptocurrencies.
According to the Cointelegraph Price Index, $29,011 Bitcoin is trading for $29,279 at time of writing, up 7% in the last seven days.