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US Crypto Caution Adds a Hurdle to Silvergate’s Rescue Effort

  • Firm questioned its own viability after crypto market crumbled
  • Receivership is a ‘distinct possibility,’ Wedbush says
Bloomberg business news
Silvergate’s Mounting Woes Are Hurting Crypto Traders

Anyone working with US regulators to salvage Silvergate Capital Corp., the crypto-friendly bank, will have to reckon with a key variable — the wariness of those same officials about digital assets. 

The Federal Deposit Insurance Corp. can get involved when a bank is near the brink, which is where Silvergate said it stood last week when it raised questions about its stability. With that out in the open, Wall Street analysts including Wedbush Securities have been speculating that the bank won’t survive, and FDIC officials have been talking with management about ways to avert a collapse, according to people familiar with the matter.