Banks and financial institutions have effectively been regulated out of taking extreme risks, especially with their customers' deposits.įor the most part, Silicon Valley Bank invested its customers' deposits in safe assets like U.S. government - in conjunction with regulators - has tightened its grip on the financial system to prevent a repeat of that catastrophe. Since the 2008 global financial crisis, the U.S. But the key takeaway is that depositors have been protected from incurring any losses, which is in stark contrast to the result for customers of collapsed cryptocurrency companies in the past. SVB Financial ( SIVB.Q -7.73%) was the parent company of Silicon Valley Bank, which just became the second largest financial institution to collapse in U.S. government, is a perfect example of why investors should keep their money within the regulated monetary system and outside of the cryptocurrency ecosystem. The turmoil in the banking sector over the past week, and the subsequent response by the U.S.

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