Crypto News: The recent collapse of major Crypto Friendly Banks has spiked the volatility in the global market. The intervention of the U.S. Financial Regulator helped the markets to recover while investors still looks confused. However, the Federal Reserve is contemplating the situation and looking forward to building tougher rules for midsize banks.
FED To Pitch In Tough Rules For Banks
According to reports, the Federal Reserve is looking to pitch in harsh regulations in order to prevent the recent collapse of Silicon Valley Bank ahead. Back to back U.S. Bank collapse has set off fears around the financial system which also led the authority to put in extra efforts to backstop the loss.
Banks handling assets between $100 billion to $250 billion have landed under the scanner of the U.S. central bank. The authority is reviewing the capital and liquidity requirements imposed on these kinds of banks. It added that the bank will also assess the stress test carried out on them annually.
The report states that the reviewing banks’ condition is pitched in after the FED intervene in the Silicon Valley Banks’ matter. However, the central bank is now facing backlash over missing the signs of mounting problems in the SVB. Experts say that these problems were too obvious to notice.
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The recent collapse of three midsized banks proved to be a major fallout for the crypto market. Bitcoin (BTC), the world’s largest crypto currency, went on to drop below the $20k price level while the cumulative digital asset market cap dropped under $1 trillion.