The crypto-friendly California bank ran into trouble last year following the collapse of the cryptocurrency exchange FTX and the flight of deposits held by crypto companies.

Federal Reserve Vice Chair for Supervision Michael Barr is set to give his first dedicated remarks on cryptocurrencies this week, and observers are looking for concrete examples of what regulators are going to do next in the volatile sector.

The Supreme Court's insistence that Congress expressly authorize regulatory action on 'major questions' is destined to run afoul of the administration's efforts to set rules of the road for cryptocurrency.

Acting Comptroller of the Currency Michael Hsu compared FTX's unwinding to the collapse of Bank of Credit & Commerce International, which similarly operated across borders to evade regulatory scrutiny.

The move comes after several banking regulators warned financial institutions they supervise of the dangers of exposure to crypto, including volatility.

Nationwide Building Society and HSBC Holdings toughened limits on retail customers' access to cryptoassets in the last week, becoming the latest U.K. banks to impose curbs after industry scandals and regulatory warnings.

Jack Dorsey's digital payment company Block said it will be using its own bitcoin reserves to provide liquidity to bitcoin's Lightning Network, a protocol meant to make transactions on the blockchain more efficient.

Sens. Cynthia Lummis, R-Wyo., and Kirsten Gillibrand, D-N.Y., said that the bill would address some concerns from various regulators, but will steer clear of addressing access to Federal Reserve master accounts.

In the starkest warning yet by a U.S. bank catering to the sector, Silvergate said it needs more time to assess the extent of damage to its finances stemming from last year's crypto rout — including whether it can remain viable.

This week's global news roundup include Canada's crackdown on crypto operators, Westpac's cloud project and more. 

The collapse of the Sam Bankman-Fried's controversial crypto exchange changed consumers' view of digital assets. Credit unions, in turn, pivoted to focus on lower-risk services.

The Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency have issued statements on crypto risks this year. Industry participants warn about a chilling effect.

Bank of England Deputy Governor Jon Cunliffe said a new digital version of the pound could help protect consumers in the event of a failure in the banking system, adding to arguments in favor of a project make a form of cash usable online.

The U.S. Securities and Exchange Commission is not the right regulator for stablecoins, according to Jeremy Allaire, the chief executive and founder of Circle, which issues the second-largest stablecoin, USD Coin,

The Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency also flagged stablecoin reserves, deposit insurance claims and brokered deposit requirements as potential liquidity risks.

The Federal Deposit Insurance Corp.'s Inspector General says the agency needs to mitigate digital asset risks, and notes that dozens of its affiliate banks are looking into — or are actively engaged with — crypto assets.

The sweeping legislative package would require digital-asset businesses to get licensed and add to the authority of the state financial services regulator. Illinois officials say the changes would protect consumers and level the regulatory playing field, but a banking trade group is pushing back against some of the ideas.

House majority whip Rep. Tom Emmer, R-Minn., introduced a similar bill last year before joining House leadership in this Congress.

Digital asset startup MoonPay has appointed former Coinbase executive Asiff Hirji as its new president and chief operating officer. Hirji aims to continue the company's push into the nonfungible token market.

Polygon Labs, the operator of an eponymous protocol used by developers to make Ethereum transactions quicker and cheaper, has cut 20% of its workforce, or around 100 employees, as part of a consolidation of business units.