Silvergate, SVB, Signature Bank, did not collapse because of Crypto

" Congressional Research Service (CRS) showed that crypto losses did not cause the collapses of Silicon Valley Bank and Signature Bank, or even Silvergate, but fear of crypto exposure was the driving force behind the bank runs. "

https://www.kitco.com/news/2023-04-27/Crypto-did-not-cause-Signature-Silvergate-and-SVB-collapses-and-FTX-exposure-was-minimal-Congressional-report.html

TLDR: They collapsed because they only held a fraction of their depositors money in reserve, thus exposing them to potential 'bank runs'

This fractional reserve banking is a practice that ALL FDIC MEMBER BANKS ENGAGE IN.

Hope you feel safer now what congress has settled the matter.