Biden Administration’s Policies Blamed for Silvergate Bank’s Liquidation Amid Crypto Crackdown

COINOTAG News, September 26 – As reported by Cointelegraph, Castle Island Ventures partner Nic Carter contends that Silvergate Bank could have navigated the financial turmoil it faced if not for U.S. regulatory pressures compelling its voluntary liquidation. Carter posits that this regulatory move is an effort by the Biden administration to sever ties with the cryptocurrency industry. In a recent article, Carter elaborates, “I believe Silvergate could have weathered the fund withdrawals and was progressing in that direction.” He references Silvergate’s bankruptcy filings and sources indicating that federal mandates required the bank to limit crypto deposits to 15%, under threat of closure if exceeded. Carter asserts this situation exemplifies what he describes as “Operation Choke Point 2.0,” where the government allegedly restricted banks from managing crypto assets or offering services to crypto firms amid last year’s banking crisis. He asserts, “The government’s secretive imposition of rules against crypto banks ignited and worsened the 2023 banking crisis, the most severe since 2008.” Supporting this, Silvergate Capital Corporation’s Chief Administrative Officer Elaine Hetrick revealed in bankruptcy proceedings that an abrupt regulatory policy shift in early 2023 primarily led to Silvergate Bank’s demise.