The FDIC has brought in the investment bank Piper Sandler to auction off Silicon Valley Bank, kicking off a high stakes sales process for the collapsed lender, according to two market sources who were granted anonymity to discuss the sale.

Tom Emmer, Republican Congressman for Minnesota, wrote a letter to the Chairman of the Federal Deposit Insurance Corporation (FDIC), Mark Gruenberg, declaring that “the FDIC is weaponizing recent instability in the banking sector to purge legal crypto activity from the U.S.” The Congressman believes federal financial regulators have weaponized their authority to purge legal digital asset entities and opportunities from the U.S., leading to broader economic instability.

The FDIC compensation and resolution of Silicon Valley Bank (SVB) have had a significant impact on the crypto market, with the compensation helping to restore confidence among investors and users alike.

Signet, a real-time payments platform popular with Signature Bank’s institutional crypto clients, will continue to operate after state regulators shuttered Signature Bank on Sunday to “protect depositors,” a source told CoinDesk. Signature Bank’s assets were transferred to Signature Bridge Bank – a new interim entity that will be temporarily run by the Federal Deposit Insurance Corporation (FDIC). Signet was launched on Jan. 1, 2019, as a proprietary blockchain-based digital payments platform. The service was integrated with digital asset custodian Fireblocks in 2020 to facilitate the secure movement, storage and issuance of digital assets. (Coindesk)

Regulators are planning to take another crack at auctioning failed Silicon Valley Bank, according to people familiar with the matter, after they were unable to find a buyer for the firm over the weekend.

Risky assets pared or reversed early gains during the European trading hours as shares in San Francisco-based First Republic Bank (FRC) nosedived in premarket trading in the U.S., reflecting investor angst over the banking sector's health. Bitcoin pulled back to $22,000, after it nearly tested its 50-day simple moving average at $22,900 during  Asian daytime hours. The cryptocurrency is still up 8% in the last 24 hour as the Federal Deposit Insurance Corp. said all depositors of Silicon Valley Bank will have full access to their money beginning Monday morning. after confirming a successful transfer of deposits to a new bridge bank. The new bridge bank, called Silicon Valley Bank N.A., will be operated by the FDIC. Silicon Valley Bank is used by many tech companies, an area that includes crypto startups.

Finally, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.

This action will bolster the capacity of the banking system to safeguard deposits and ensure the ongoing provision of money and credit to the economy.

All depositors in Silicon Valley Bank will be made whole and have access to their funds on Monday, federal banking and finance regulators said in a joint statement Sunday.

On Sunday (March 12), the crypto market had a great to reason to cheer after U.S. Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg released a hugely important joint statement.