CastleIsland Ventures Partner: Silvergate's collapse is mainly due to regulatory pressure, not a financial crisis

Nic Carter, a partner at CastleIsland Ventures, stated that the intervention of U.S. regulators forced Silvergate Bank to voluntarily liquidate, even though it could have survived otherwise. Carter pointed out that the Biden administration had demanded Silvergate limit its cryptocurrency deposits to 15%, or face severe consequences. This move is seen as "Operation Choke Point 2.0", which aims to undermine banks supporting cryptocurrencies through covert rules and weaken industry development.

Carter also noted that Silvergate's decision to voluntarily liquidate rather than enter into an FDIC takeover program was "suspicious," a situation that has only occurred a few times in the past 30 years. Carter believes that Silvergate's collapse was more due to regulatory pressure than a financial crisis.