Justin Sun, the creator of the Tron network, has pledged to provide financial assistance to anyone establishing a trustworthy bank that can serve the demands of the crypto market.
According to Justin Sun, in a thread on Twitter posted on March 12, the recent failure of the Silicon Valley Bank demonstrated the possible harm caused to many in the sector. He is prepared to work with anyone creating “a viable banking infrastructure that links traditional finance and crypto” as a result.
Additionally, the Huobi global adviser mentioned that this bank might be established either locally or globally. The institution, he continued, would play a crucial role in promoting greater usage of crypto.
Changpeng “CZ” Zhao, CEO of Binance, hypothesized that the recent failure of crypto-friendly banks might have been the result of a coordinated government campaign. Institutions that supported digital assets, including Silvergate and SVB, have crumbled in recent weeks.
Is the latest SBV collapse a coordinated fight against crypto?
Numerous participants in the industry share Zhao’s hypothesis. Also, local residents compared the current wave of increased scrutiny to “Operation Choke Point 2.0.” This is a reference to “Operation Choke Point” under President Obama.
The U.S. Department of Justice at the time made it challenging for unfavorable firms like gun dealers to conduct business with traditional banks. As a result, the financial institutions that provided services to these businesses had to deal with challenges and fines.
Nic Carter, a venture capitalist, claimed that recent occurrences demonstrated a government-led effort to dissuade traditional banking institutions from providing services to the industry. Regulators have stated explicitly that touching public blockchains in any way is regarded as unacceptable and hazardous.
Furthermore, the recent legislative actions taken by US financial regulators to regulate the industry have been questioned by four US congressmen. The lawmakers believe that this overreaching practice may spread to other legal fields.
A number of industry participants have said that banks pose a threat to the crypto sector. Banks, according to Changpeng Zhao, pose a threat to fiat-backed stablecoins. He further stated that more stablecoins backed by cryptocurrency were required.