Gemini co-founder and CEO, Cameron Winklevoss, accused US regulators of applying double standards in handling the First Republic Bank crisis.
According to Winklevoss, if First Republic were a crypto bank, it would have gone bankrupt weeks ago. Winklevoss’s allegations coincide with the letter penned by three republican members of the United States House of Representatives Financial Services Committee.
Investors Turn To Crypto Assets
Government officials appointed trustees to Silvergate and Silicon Valley Bank on March 8 and March 10.
CNBC’s April 26 news reported that First Republic’s advisers refused the government to appoint a trustee to the bank, so they tried to find more financial aid to the struggling firm. However, First Republic advisors have reportedly said that the firm will ensure that the bank remains operational with the current private market solution to its liquidity issues.
Fox News senior correspondent Charles Gasparino reported on April 26 that the private bailout was supported by US Treasury Secretary Janet Yellen, who did not want to bail out depositors with government funds, as was the case with Silvergate and Silicon Valley Bank.
Things got into a stalemate as First Republic reported in its Q1 report that total deposits fell by more than $100 billion. The firm said it will pursue strategic options to strengthen its financial position as soon as possible.
Shares of First Republic Bank have fallen more than 64 percent since Monday, from $16.14 to $5.68.
The collapse of First Republic Bank is believed to be the trigger for investors to invest in Bitcoin and other cryptocurrencies as their distrust of central banking institutions grows.
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