With every major stakeholder in the Finance ecosystem keeping tabs with the events around First Republic Bank (FRC), Gemini Co-Founder and CEO, Cameron Winklevoss has slammed US banking regulators. Taking to his Twitter account, the vocal crypto leader and entrepreneur noted that the regulators are showing double standards with respect to their handling of the embattled First Republic Bank.
Recall that First Republic Bank has been facing deep liquidity crisis at the time Silicon Valley Bank and Signature Bank met their waterloos last month. Through the help of top banking giants, a $30 billion deposit was lodged into First Republic Bank to help it shore up its liquidity.
However, recent events that has seen the share price of the regional bank collapse by more than 65% since the start of the week has drawn more concerns from shareholders and depositors. As reportedly recently by Coingape, the US government has refused to bail out the ailing bank, further dragging down its liquidity crunch across the board.
To Cameron, assuming First Republic Bank is crypto focused, regulators would have handled the fallout differently.
“First Republic Bank is down another 35% and falling fast. If this was a “crypto” bank it would have been assassinated weeks ago. The fact that is hasn’t been taken into receivership shows just how blatant the double standard is,” he said in his tweet.
First Republic Bank is down another 35% and falling fast. If this was a “crypto” bank it would have been assassinated weeks ago. The fact that is hasn’t been taken into receivership shows just how blatant the double standard is.
— Cameron Winklevoss (@cameron) April 26, 2023
FRC Crisis: The Case for Bitcoin
The broad crisis that First Republic Bank (FRC) is facing is notably fueling a growing trust for Bitcoin (BTC) and other major altcoins. Despite starting the week with a relatively bearish momentum, Bitcoin is now trading at a price of $29,838.72, up by more than 9% over the past 24 hours.
With investors now exploring more safe bets, Bitcoin as a risk asset is now becoming more attractive, a trend that has helped push up the correlation between the digital currency and Gold.
With the waning trust for centralized banking, the alternative means to safeguard money as proffered by Bitcoin is one of the biggest fundamentals that is helping to drive the price of the premier digital currency to a new height at this time.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/gemini-ceo-accuses-regulators-of-double-standards-frc-crisis/