• The Silicon Valley Bank collapse has affected many crypto firms, Ripple CEO Brad Garlinghouse has assured investors that the company is in a strong financial position.
• The Federal Reserve has committed $25 billion to ensure the regular functionality of financial institutions affected by the ongoing crisis in the crypto market.
• Ripple’s lawsuit with the Securities and Exchange Commission (SEC) over the nature of its native coin, XRP, is still ongoing but it’s expected to come to an end soon.
Silicon Valley Bank Collapse Affects Crypto Companies
The recent collapse of Silicon Valley Bank (SVB) has had a widespread impact on numerous crypto companies, including Coinbase, Paxos, Celsius and Circle. As a result, many crypto assets traded in red last week due to these banks closing down their operations and tying up many funds in their vaults.
Ripple Remains In Strong Financial Position
In order to reassure investors that Ripple is doing enough to sustain normal operations on its network despite this setback, CEO Brad Garlinghouse tweeted that they have ample cash reserves with other bank partners so their funds are safe and there will be no disruption in daily business activities. David Schwartz also tweeted that Ripple would soon release an official statement addressing this issue.
Federal Reserve Commits $25 Billion To Financial Institutions
The Federal Reserve announced it will commit around $25 billion to guarantee the proper functioning of any financial institutions affected due to these events in the crypto market; meaning taxpayers and users of Ripple won’t need to pay for any losses incurred as a result of SVB shutting down operations.
Ripple Lawsuit With SEC Continues
The case between Ripple and US Securities & Exchange Commission (SEC) regarding the status of XRP remains unresolved at present but June is seen as the deadline for a verdict being made either by district court or jury trial if necessary..
Fortunately for all parties involved, Brad Garlinghouse’s statement was met with much approval from users who were reassured that their funds are safe despite what happened with Silicon Valley Bank – while some banks may have shut down their services, Ripple is confident they can continue normal operations without too much disruption thanks to their other banking partners and support from Federal Reserve.