contributor
- Gemini’s Cameron Winklevoss has accused U.S. regulators of double standards in regard to their dealing with the crisis surrounding the First Republic Bank.
- Winklevoss claimed that if the First Republic Bank had been a “crypto bank,” it would have been “assassinated weeks ago.”
Cameron Winklevoss, co-founder, and CEO of crypto exchange Gemini, has accused U.S. regulators of double standards in regard to their dealing with the crisis surrounding the First Republic Bank.
Winklevoss tweeted that if the First Republic Bank had been a “crypto bank,” it would have been “assassinated weeks ago.”
It is worth noting that the First Republic began encountering “structural challenges” with its balance sheet at the same time that Silicon Valley Investment Bank and Silvergate Bank were winding down operations or being closed down by federal regulators.
According to a recent CNBC news report, advisors at First Republic Bank will now try persuading major U.S. banking institutions to provide extra financial aid due to the government’s refusal to put the bank into receivership.
The bank has already received $30 million in aid.
Advisers said that the current private market solution to the firm’s liquidity problems would see the bank remain in operation. Government receivership, on the other hand, is nothing but a “closed-bank” scenario.
Readers should remember that both Silvergate and Silicon Valley Bank were taken into government receivership in early March.
Another banking crisis shines a spotlight on Bitcoin’s trust
First Republic reported its Q1 earnings call on Monday (24 April), revealing that total deposits had plummeted by more than $100 billion. The firm claimed that it would be “pursuing strategic options” to strengthen its financial standing as quickly as possible.
Market shares of the embattled institution have fallen more than 66% since then, from $16.14 to $5.7 at press time.
The widespread problem that First Republic Bank (FRC) is experiencing is significantly increasing trust in Bitcoin (BTC) and other altcoins. Even though this week began with a bearish market sentiment, BTC, at press time, was trading at $29,120, up more than 7% within the last four days.
