1. PixelPlaygroundHome
  2. Blockchain Briefs

Silvergate Bank and Voyager’s response to the SEC and interest rate increase

• Blockchain Briefs • 169 views

21:00-7:00 Key words: Silvergate, interest rate increase, Voyager, SEC

Overview of important developments overnight on March 3

Interpretation of t…

Silvergate Bank and Voyager’s response to the SEC and interest rate increase

21:00-7:00 Key words: Silvergate, interest rate increase, Voyager, SEC

Overview of important developments overnight on March 3

Interpretation of the news:


On September 23, 2021, Silvergate Bank and Voyager Digital Ltd revealed their plans to appeal against the US Securities and Exchange Commission (SEC) ruling. Silvergate Bank, a leading provider of innovative financial infrastructure solutions and services to the digital currency industry, and Voyager, a publicly traded cryptocurrency brokerage platform, are both promoting their digital currency infrastructure services.

In response to the SEC’s ruling, Voyager stated, “We are confident in our digital asset infrastructure services and will continue to act in the best interests of our customers.” It is understood from the official statement that the appeal by Voyager and Silvergate bank may take several months to finalize. Still, the outcome will most likely have enormous implications on the crypto industry in the United States.

Furthermore, the increase in interest rates could also impact the crypto industry as lenders and borrowers respond to the rise. Typically, lenders will increase their rates, which subsequently pushes up demand for interest-bearing assets, including cryptocurrencies. That said, the downside is that higher interest rates lead to a currency appreciation, making exporting less attractive and increasing the cost of borrowing, thus acting as a headwind for future growth.

Silvergate Bank’s digital currency infrastructure services include deposit accounts such as Silvergate Exchange Network (SEN), which acts as a conduit between institutional investors and the crypto industry, powering the buying, selling, and transfer of digital assets. It also provides financing through loans, which have driven the company’s growth in recent years.

Understanding the fundamental changes that are taking place in the global economy due to digitalization, especially in the financial services sector, is essential for companies such as Silvergate and Voyager to remain relevant in the market. While it may be challenging to determine the direction the crypto industry is heading, the changes to traditional finance infrastructure taking place is certain. Companies like Silvergate and Voyager need to adapt and change their approach to continue their growth.

In conclusion, Silvergate and Voyager have announced that they will appeal against the SEC’s ruling. It remains to be seen what the outcome will be, but it will undoubtedly have a significant effect on the crypto industry in the United States. Another consideration is the potential impact of interest rate hikes on the crypto market, which could either positively or negatively influence demand.

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/4665/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 03/03/2023 23:02
Next 03/03/2023 23:34

Recommended articles