EddieJayonCrypto

 16 Mar 23

tl;dr

• Silicon Valley Bank bailout details: US government to buy bonds back at 100%, but this isn't a sustainable response for all banks• Credit Suisse receives a $54B loan from Swiss National Bank amid previous shady tax dealings• US government agencies appear to be in sync in efforts to choke crypto ou...

• Silicon Valley Bank bailout details: US government to buy bonds back at 100%, but this isn't a sustainable response for all banks
• Credit Suisse receives a $54B loan from Swiss National Bank amid previous shady tax dealings
• US government agencies appear to be in sync in efforts to choke crypto out of banking industry with current bank seizures
• Anchorage Digital to lay off 20% of staff, citing regulatory uncertainty and current crypto market conditions
• Coinbase to suspend trading and delist 6 coins in March 2023, possibly to demonstrate compliance with regulators
• Salesforce launches suite of NFT products and management services for NFT loyalty programs

The US government seems to be taking advantage of the current banking situation to clamp down on crypto in the banking industry. Here are my thoughts today.

1. OK, so I dug a little deeper because something told me Silicon Valley Bank was not a normal bailout. Basically, the US government will buy the bonds back at 100% that currently only have a 95% value. If they government holds the bonds to term, we will make our money back. We are simply providing immediate liquidity to the bank. That said, this is not a sustainable response for every bank out there. So I am still expecting other banks to possibly suffer a different fate.

2. Credit Suisse is definitely being bailed out with a $54B loan from the Swiss National Bank. Don't forget that in 2022 they had to pay $234M to end French tax probe. That was not the first time the bank was involved in shady tax dealings, having been found guilty of helping US citizens evade taxes in 2014.

3. The idea that the US government is looking to choke off banking access for crypto is getting stronger. When you take in account the Federal Reserve expects to have their real-time payments system up and running in July and that the government is going to force any bank looking to purchase Signature Bank to divest its crypto business The FDIC has reportedly asked banks to have their bids in by Friday for both Signature Bank and Silicon Valley Bank. This is the second attempt at selling the assets of SVB having already failed this past Sunday. The winner, if there is one, of Signature's assets will have to agree to give up all the crypto business at that bank, as reported by Reuters. All of this together says the US government agencies seem to be in sync in their efforts to choke crypto out of the banking industry. Even House Majority Whip Tom Emmer is questioning the actions of the government agencies.

4. Another crypto-friendly bank seems to be in trouble. Anchorage Digital is set to lay off 20% of its staff, citing regulatory uncertainty. Mind you that is not the only reason why they are going to have the extensive layoffs. The current crypto winter also has something to do with it.

5. In what must be a demonstration to regulators, Coinbase is suspend trading and delist 6 coins: Rally (RLY), DFI Money (YFII), Mirror (MIR), OMG Network (OMG), Loom Network (LOOM), & Augur (REP) on March 29, 2023.

6. Salesforce is getting into the Web3 game with a limited launch of a suite of products specifically geared toward NFTs. They are also introducing management services for NFT loyalty programs. I think that is actually a smart move for the company.

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