Bitcoin and USDC Price Reaction! US Officials Plan Extraordinary Step About Silicon Valley Bank

According to three people with knowledge of the matter, who spoke on condition of anonymity to disclose private conversations, US federal officials are seriously considering securing all uninsured deposits at Silicon Valley Bank.

Authorities plan to take an extraordinary action to prevent a situation where they fear a panic in the US financial system.

USDC Price Reacts Positively to Development

Cryptocurrency This development regarding the bank, where the company Circle also has reserves, manifested itself as a positive reaction in the USDC price, and the price of the token exceeded $ 0.97.

Treasury Department, Fed and Federal Deposit Insurance Agency officials discussed the idea this weekend, hours before financial markets open in Asia, sources said. White House officials have also looked into the idea, according to two separate people familiar with these discussions.

The plan is among potential policies that could be implemented if the US government cannot find a buyer for the bank that failed. According to two people familiar with the matter, the FDIC started an auction process for the SVB on Saturday and hopes to identify a winning buyer, with the final bids submitted at 10 PM Sunday afternoon.

After the news, BTC also climbed above $ 21,000.

Officials told members of Congress that selling the SVB to a healthy corporation was the preferred solution. This is how most bankruptcies are resolved and ensures that depositors don’t lose money.

Officials said that although the FDIC insures bank deposits of up to $250,000, a provision in federal banking law may also authorize uninsured deposits to be protected if they conclude that not doing so would pose a systemic risk to the overall financial system.

In this case, uninsured deposits can be supported by an insurance fund regularly paid by US banks.

*Not investment advice.