U.S. Treasury Secretary Janet Yellen has ruled out a government bailout of the collapsed Silicon Valley Bank (SVB), which was shut down by regulators on Friday. Yellen explained that the reforms put in place after the 2008 financial crisis were aimed at preventing the need for government bailouts.
U.S. Treasury Secretary Janet Yellen stated in an interview on CBS News, aired Sunday, that the government is not considering a bailout for the collapsed Silicon Valley Bank (SVB). The bank was shut down by regulators on Friday and put into receivership by the Federal Deposit Insurance Corporation (FDIC).
Yellen was asked whether the U.S. government needs to “intervene and take emergency measures because of SVB failure.” The treasury secretary replied: “America’s economy relies on a safe and sound banking system that can provide for the credit needs of our households and businesses. So whenever a bank, especially one like Silicon Valley Bank with billions of dollars in deposits fails, it’s clearly a concern.” She continued:
I’ve been working all weekend with our banking regulators to design appropriate policies to address this situation.
Yellen explained that in the aftermath of the 2008 financial crisis, “unique controls” were put in place to enhance capital and liquidity supervision, and they were tested during the early days of the Covid-19 pandemic. The system “proved its resilience so Americans can have confidence in the safety and soundness of our banking system,” she claimed.
Responding to a question about whether she has “ruled out” a government bailout of Silicon Valley Bank, the treasury secretary detailed:
Let me be clear that during the financial crisis, there were investors and owners of systemic large banks that were bailed out, and we’re certainly not looking. And the reforms that have been put in place means that we’re not going to do that again.
While noting that she cannot provide further details on the SVB situation at this time, Yellen insisted: “The American banking system is really safe and well-capitalized. It’s resilient.”
Yellen acknowledged that the government is “well aware that many startup firms have deposits and venture capital firms have deposits at this bank that have been affected by its failure,” emphasizing that “this is something we’re working to try to resolve.”
Following the collapse of Silicon Valley Bank, billionaire Bill Ackman, CEO and portfolio manager of Pershing Square Capital Management, warned of “vast and profound” consequences of the U.S. government allowing the bank to fail without protecting all depositors. He also warned of possible bank runs starting on Monday. Meanwhile, Rich Dad Poor Dad author Robert Kiyosaki has cautioned that another bank is set to crash.
What do you think about the statements by U.S. Treasury Secretary Janet Yellen? And, do you think the government should bail out SVB? Let us know in the comments section below.
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
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U.S. Treasury Secretary Janet Yellen has ruled out a government bailout of the collapsed Silicon Valley Bank (SVB), which was shut down by regulators on Friday. Yellen explained that the reforms put in place after the 2008 financial crisis were aimed at preventing the need for government bailouts.
U.S. Treasury Secretary Janet Yellen stated in an interview on CBS News, aired Sunday, that the government is not considering a bailout for the collapsed Silicon Valley Bank (SVB). The bank was shut down by regulators on Friday and put into receivership by the Federal Deposit Insurance Corporation (FDIC).
Yellen was asked whether the U.S. government needs to “intervene and take emergency measures because of SVB failure.” The treasury secretary replied: “America’s economy relies on a safe and sound banking system that can provide for the credit needs of our households and businesses. So whenever a bank, especially one like Silicon Valley Bank with billions of dollars in deposits fails, it’s clearly a concern.” She continued:
I’ve been working all weekend with our banking regulators to design appropriate policies to address this situation.
Yellen explained that in the aftermath of the 2008 financial crisis, “unique controls” were put in place to enhance capital and liquidity supervision, and they were tested during the early days of the Covid-19 pandemic. The system “proved its resilience so Americans can have confidence in the safety and soundness of our banking system,” she claimed.
Responding to a question about whether she has “ruled out” a government bailout of Silicon Valley Bank, the treasury secretary detailed:
Let me be clear that during the financial crisis, there were investors and owners of systemic large banks that were bailed out, and we’re certainly not looking. And the reforms that have been put in place means that we’re not going to do that again.
While noting that she cannot provide further details on the SVB situation at this time, Yellen insisted: “The American banking system is really safe and well-capitalized. It’s resilient.”
Yellen acknowledged that the government is “well aware that many startup firms have deposits and venture capital firms have deposits at this bank that have been affected by its failure,” emphasizing that “this is something we’re working to try to resolve.”
Following the collapse of Silicon Valley Bank, billionaire Bill Ackman, CEO and portfolio manager of Pershing Square Capital Management, warned of “vast and profound” consequences of the U.S. government allowing the bank to fail without protecting all depositors. He also warned of possible bank runs starting on Monday. Meanwhile, Rich Dad Poor Dad author Robert Kiyosaki has cautioned that another bank is set to crash.
What do you think about the statements by U.S. Treasury Secretary Janet Yellen? And, do you think the government should bail out SVB? Let us know in the comments section below.
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
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On Saturday, several centralized crypto trading platforms and payment processors stopped USDC auto conversions. However, USDC experienced a significant trading volume on decentralized exchange (dex) platforms such as Uniswap, Curve, and Pancakeswap. Uniswap alone recorded $10.13 billion in trades over the past day, with more than 55% of those swaps involving USDC against wrapped ether, and the stablecoin tether. During the last 24 hours, USDC emerged as the most dominant trading pair on dex platforms.
Based on statistics, the stablecoin usd coin (USDC) recorded $26.73 billion in global trade volume during a 24-hour period. On Saturday, USDC depegged from the U.S. dollar, reaching a low of $0.877 per coin. As a result, crypto firms such as Binance, Coinbase, Crypto.com, and Bitpay paused USDC payments and auto conversions.
However, despite centralized exchanges halting USDC conversions, the stablecoin accounted for 29% of the $90.70 billion in 24-hour global crypto trades. According to statistics from coingecko.com, over the last day, $15.66 billion was settled on dex trading platforms, with $10.13 billion of that amount resulting from trades on Uniswap version three (v3).
The two most dominant trading pairs on Uniswap were USDC/WETH and USDC/USDT, with USDC swaps with wrapped ether accounting for $2.92 billion, and USDC trades with tether equating to $2.69 billion. Together, USDC/WETH and USDC/USDT represented 55.48% of all trades on Uniswap v3 on Saturday.
USDC/DAI accounted for 5.8% of Uniswap v3’s trades, amounting to $587 million in volume. Additionally, USDC saw numerous other trades with various crypto assets listed on the dex platform. On Curve’s Ethereum-based dex, $179 million in USDC/DAI swaps occurred during the day. USDC was a prominent Curve pair with several other stablecoins like USDT, FRAX, GUSD, MIM, among others.
Curve 3pool share is the bellwether of crypto sentiment💥
During today's USDC depeg, ppl panic sold USDC & DAI for USDT. USDT share in 3pool collapsed to 2%
Ironically, when Tether FUD happened during Terra crash & FTX collapse, USDT was the "infamous" & left 85% in 3pool🤔 pic.twitter.com/VNo3ykxiob
— Panda Jackson (@pandajackson42) March 11, 2023
Curve’s 3pool experienced a decrease in its share of USDT to 2% as traders sold USDC during the depegging incident. On Saturday, the dex platform Pancakeswap v2 recorded $265,888,470 in trading volume, with USDC/BUSD being the most traded pair out of 3,554 trading pairs. $59.95 million, or 22.55% of the trades, were USDC/BUSD swaps.
Pancakeswap’s Stableswap saw $250,361,665, with USDC/BUSD pairs accounting for 44.72% or $111.95 million of the swaps. Uniswap v2 processed $152,276,446 in swaps on Saturday, with USDC pairs once again topping the list of v2 trading pairs. USDC trades with wrapped ether on Uniswap v2 represented 32.95% of the dex’s volume, and 14.80% of the swaps were USDC/USDT.
While dex platforms generated a significant amount of volume from USDC trades, centralized exchanges also witnessed a considerable number of USDC swaps on Saturday. Metrics indicate that Binance recorded $582.97 million in USDC trades against USDT, and Kraken saw $476 million in USDC/USD trades.
Kucoin registered $269.80 million in USDC/USDT swaps, and Kraken’s USDC trades with tether (USDT) amounted to $235 million. Kraken saw another $80.43 million in USDC trades with bitcoin (BTC), and another $78.32 million of USDC/EUR swaps. Of the $26.73 billion in USDC swaps on both dex platforms and centralized exchanges, each USDC swap was for $0.975 or less, depending on the hour of the day.
What are your thoughts on the USDC swaps and trading volume from Saturday? Share your opinions in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
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