The US Securities and Exchange Commission (SEC) has received notice from Metropolitan Commercial Bank (one of the largest banks in the US for 2022) that it is exiting the cryptocurrency industry.
Metropolitan Commercial Bank, one of the top 10 nationally ranked banks in the US with a capitalisation of about $5bn, sent a letter to the SEC on April 18. The document indicated that as of March 31, digital currency deposits on the bank's balance sheet had fallen from $820 million to $275 million - a threefold decrease. They informed the SEC that this was due to their decision to refuse to participate in the cryptocurrency business.
Metropolitan has announced that it will cease all digital currency-related operations. In a press statement, the bank's management explained that the collapse of Silvergate Bank, Signature Bank and Silicon Valley Bank was a major factor in their decision. In addition, there was a big impact from US regulators who reminded financial institutions to stay away from the crypto industry.
Earlier, the Board of Directors of the Federal Reserve (Fed) rejected Custodia Bank's application for membership on the grounds that it did not meet the purposes specified in the Fed Act because of its primary focus on cryptocurrency services.