Posted March 13, 2023
By Chris Campbell
Crypto Buzz: Limiting SVB Fallout → Restabilization → Keeping the Faith
Welcome to another Monday edition of Daily Crypto Hunter.
As you know, the crypto industry took a few hits over the past week, watching a trifecta of collapses from Silicon Valley Bank, Signature, and Silvergate.
Read on for the latest industry updates as we head into a new week…
Limiting SVB Fallout
The United States government has stepped in to help mitigate the threat of further financial crisis stemming from the collapse of Silicon Valley Bank.
In a joint statement, Federal Reserve Chair Jerome Powell, Treasury Secretary Janet Yellen, and FDIC Chair Martin Gruenberg said, “Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system…”
The government's weekend diligence would see SVB customers able to access their deposits beginning Monday morning.
Get the full story here.
Aside from quelling customers concerns about accessing their funds, the weekend made for the return of some much needed price stability.
USD Coin (USDC) is a digital asset designed to remain at a stable value of 1 USD. The popular stablecoin proved to be anything but stable following the week's events. The stablecoin's manager, Circle, said that SVB owned $3.3 billion of the roughly $10 billion in cash reserves that support USDC, a statement that sent USDC plummeting to a frightening low of under $0.87 on Saturday.
Just two days later, USDC has rebounded following the US Government's emergency bailout.
Click here to read more about the weekend rally.
Keeping the Faith
“...rest assured that our banking system is safe…"
–President Joe Biden
President Biden addressed the nation live on Monday, to reassure that the banking system remained secure.
His remarks followed the US guaranteeing all deposits with Silicon Valley Bank and Signature Bank.
Watch a replay of the briefing here.