TRON Network founder Justin Sun has offered financial support to anyone who wants to create “a credible bank that can serve the needs of the crypto industry”.
In a March 12 Twitter thread, Justin Sun said that the recent collapse of Silicon Valley Bank showed “the potential damage to many people in the industry.”
Justin Sun Open to Bridging the Banking Gap with Crypto
Because of this, he is willing to cooperate with anyone in building “a robust banking infrastructure that bridges traditional finance and crypto”.
Huobi’s global advisor also pointed out that the bank could be developed locally or overseas. He added that this institution will be crucial in enabling widespread crypto adoption.
Binance CEO Speculates on the Downfall of Crypto-Friendly Banks
Binance CEO Changpeng ‘CZ’ Zhao speculated that the recent collapse of crypto-friendly banks could be a coordinated effort by authorities. In recent weeks, crypto-friendly institutions such as Silvergate and SVB have collapsed.
Zhao’s speculation is generally considered to be true among many stakeholders within the crypto community. Community members compared the recent wave of increased scrutiny to “Operation Choke Point 2.0”. This is a reference to President Obama’s “Operation Choke Point”.
At the time, the US Department of Justice made it difficult for adversarial businesses such as gun dealers to do business with traditional banks. As a result, financial firms serving these businesses faced barriers and penalties.
Venture capitalist Nick Carter wrote that recent events showed a government-led effort to discourage traditional financial institutions from serving the crypto industry. Carter also said that the regulator made it clear that “touching public blockchains in any way is considered unacceptably risky.”
Meanwhile, four US lawmakers have questioned the recent regulatory moves by US financial regulators targeted at the crypto industry. According to lawmakers, this extremist practice could bleed into other legal areas.
Do banks pose a risk to fiat-backed stablecoins?
Many crypto stakeholders have argued that banks threaten the crypto industry. changpeng zhao emphasis on Banks were a risk to fiat-backed stablecoins. He also said that there was a need for more crypto-backed stablecoins.
Cardano founder Charles Hoskinson shared a similar view.
BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.