Following the collapse of Silicon Valley Bank and a wider banking-sector panic this month, the smaller banks told regulators that explicitly insuring all deposits would stem the flow of money to the largest banks.
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From Bloomberg: House conservatives said they would oppose any universal guarantee of bank deposits above the current $250,000 FDIC insurance cap, even as other lawmakers said they're weighing a statutory increase in the limit following two recent bank collapses.
Since the sudden collapse of Silicon Valley Bank on March 10, unstable deposit funding has roiled the banking industry. Ideas on how to reestablish confidence include providing a temporary guarantee for all deposits, raising the deposit insurance limit and reviving an expired program that helped quell market panic in 2008.