Unlike last year's collapse of FTX, cryptocurrency did not play a leading role in the collapse of Silicon Valley Bank and Signature Bank, experts tell ABC News.
and Signature Bank -- representing the second and third largest bank failures in U.S. history -- has renewed lingering questions about what role cryptocurrency is playing in financial sector failures.
MORE: After the fall of Silicon Valley Bank and Signature Bank, here are tips to keep your money safe Boston College law professor Patricia McCoy said the bank's collapse was hastened by its large holdings of the cryptocurrency USDC, which is managed by the financial technology company Circle Internet Financial.Chine Nouvelle/SIPA/Shutterstock
On the recent deregulation of banking, Yermack pointed to the banks' investment of large amounts of capital into Treasury bonds, which are typically very safe. However, said Yermack, "because interest rates changed a lot in the last year or so, those bonds lost value -- and under the accounting rules, the banks could still count them at 100 cents on the dollar."
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