Thread by @fhomoney

Signature Bank President and Chief Executive Officer Joseph J. DePaolo:

$SBNY committed to the [digital assets] business, it is not going away!

High cost digital asset deposit outflows expected to continue Q1 & Q2, maybe stability in Q3.
{where is the industry going to go?}

$SBNY will not do anything long-term with remaining digital asset deposits (such as lend out for income) due to absence of regulatory clarity.

BUT they believe somewhere in the next few years the banking system will not conduct transactions the way it does today.
{we know this!}

$SBNY: If the U.S. regulators and Congress can get on the same wavelength with rules that Signature and others can follow -

this will enable the economy to function and FIX the lack of confidence that hit our sector with the FTX situation...

A "Bernie Madoff"-like crisis...

$SBNY: With all innovation, the initial stages are looked down upon. Signature is a believer in the new financial innovation brought about by blockchain {Joe sounded very sincere here!}

Every major bank is in the space (perhaps more so internationally) - we need regulation.

$SBNY Signet payments network was not build just for digital asset clients - currently the #2 user group in terms of volume. Its features required regulatory approval - that's interesting... not sure which regulator, but hopefully means we should not see this service dismantled.

FIN/ $SBNY is not of aware, nor has been contacted regarding any investigations or requests to appear before Congress. Their conversations with regulators look like a Spiderman meme - each one seems to be waiting for the others. OCC <>Fed<>FDIC etc. #lesigh