The American bank Cross River, which supports crypto projects, received an instruction from the Federal Deposit Insurance Corporation (FDIC) to stop this type of activity.

The FDIC has initiated enforcement proceedings alleging “unsafe and unreliable” banking practices against cryptocurrency-friendly bank Cross River. According to the FDIC, Cross River failed to establish and maintain “effective internal controls, information systems, and prudent credit underwriting practices.” The order says that in its operations the bank was guided by “unsafe or unreasonable” methods of work.

Commenting on the FDIC’s order, Cross River’s press office said the bank’s board agreed to strengthen oversight and controls and ensure that necessary corrective action is taken.

“It is important to note that the order does not mention discriminatory practices or redress. It also places no particular restrictions on our other partnerships or loan products that we currently offer,” a Cross River spokesperson said.

Cross River Founder and Chairman Gilles Gade acknowledgedthat after the collapse of Silicon Valley Bank (SVB), its institution is subject to constant scrutiny by various regulatory bodies. In his opinion, the events with SVB have become a new starting point for strengthening regulatory control, with a special focus on banks that support the crypto industry.

Earlier, members of the Financial Services Committee of the US Congress requested information from the FDIC, FRSO and OCC confirming or refuting possible concerted actions to debank cryptocurrency companies.