TechFlow news, on September 26, according to Cointelegraph, Nic Carter, partner at Castle Island Ventures, said that if not for U.S. regulators forcing its voluntary liquidation, the former crypto-friendly bank Silvergate Bank could have survived. Carter believes this reflects the Biden administration's attempt to "choke off" the cryptocurrency industry.
In an article published on September 25, Carter wrote: "I believe Silvergate could have weathered the outflow of funds and was moving in that direction." He cited recent bankruptcy filings and internal communications from Silvergate indicating that the Biden administration demanded the bank cap its crypto-related deposits at 15%, or face closure.
Carter sees this as evidence of what he calls "Operation Choke Point 2.0"—a government effort during last year’s banking crisis to prevent banks from holding crypto assets or servicing crypto firms. He stated, "The government suppressed the domestic crypto industry by secretly establishing rules targeting crypto banks, which triggered and worsened the 2023 banking crisis—the worst since the 2008 financial crisis."
Previous report, Elaine Hetrick, Chief Administrative Officer of Silvergate Capital Corporation, disclosed in bankruptcy filings that a "sudden policy shift" by regulators in early 2023 was the primary reason behind Silvergate Bank's collapse.
