CRACKDOWN

Summary from the TLDR Crypto newsletter

Following the collapse of Silvergate Capital Corp. and Signature Bank, crypto firms are turning to smaller, regional lenders and Swiss and Asian banks for services. This comes as increased scrutiny and regulatory crackdowns in the US have led mainstream banks to be cautious about crypto causing the banking situation for crypto firms in the US to be worse than the pre-2018 era. It has led to the development of a new banking system for crypto, which is fragmented/decentralized, less US-focused, and less publicized. While this may be a challenge for the industry, it could lead to a more resilient system.