Nasdaq-listed cryptocurrency exchange Coinbase has told clients it will no longer support the real-time payments network of Signature Bank, Signet. Coinbase users who took advantage of the network for U.S. dollar deposits and withdrawals will now be unable to send funds outside normal banking hours.

Florida Governor and potential Republican presidential candidate Ron DeSantis has proposed legislation prohibiting the use of a central bank digital currency (CBDC) as money within the state.

FTX Group has requested intervention from US Bankruptcy Judge John Dorsey to safeguard its assets from liquidators handling the winding down of its Bahamas unit.

 Top stories in the Crypto Roundup today:

• Coinbase Drops Support for Signature Bank’s Signet Network
• Florida Governor Calls for CBDC Ban
• FTX Asks Judge to Shield Property From Liquidators
• Chart of the Week: 30-day Correlation: BTC, ETH, S&P 500

Coinbase Drops Support for Signature Bank’s Signet Network

Nasdaq-listed cryptocurrency exchange Coinbase has told clients it will no longer support the real-time payments network of Signature Bank, Signet. Coinbase users who took advantage of the network for U.S. dollar deposits and withdrawals will now be unable to send funds outside normal banking hours.

The exchange has noted, however, that it’s looking for a new technology partner. Customers can meanwhile still make cryptocurrency deposits, withdrawals, and conversions from the fiat currency to USDC around the clock.

Signature Bank was shut down by New York State regulators last weekend, and its assets were transferred to a new entity run by the Federal Deposit Insurance Corporation (FDIC) known as Signature Bridge Bank.

An FDIC spokesperson was quoted saying that Signet is “still in our receivership, no decisions have been made regarding it at this time.”

Florida Governor Calls for CBDC Ban

Florida Governor and potential Republican presidential candidate Ron DeSantis has proposed legislation prohibiting the use of a central bank digital currency (CBDC) as money within the state.

The proposal would also bar the use of a CBDC issued by central banks outside of the United States in Florida. DeSantis says the move is meant to protect Florida consumers and businesses from the “reckless adoption of a ‘centralized digital dollar’ which will stifle innovation and promote government-sanctioned surveillance.”

In a statement, DeSantis also called on other states to adopt similar legislation. DeSantis’ proposed legislation also seeks to address privacy concerns and protect the role of community banks and credit unions.

The move comes after President Joe Biden issued an executive order in 2020, directing the federal government to study the potential uses and risks of a CBDC.

FTX Asks Judge to Shield Property From Liquidators

FTX Group has requested intervention from US Bankruptcy Judge John Dorsey to safeguard its assets from liquidators handling the winding down of its Bahamas unit.

According to Bloomberg, the firm has argued that the liquidators have no legitimate claim over any portion of the bankrupt firm's assets. In an adversary proceeding filed in bankruptcy court, FTX Group is seeking a declaration from Dorsey that assets belonging to Sam Bankman-Fried and other employees, lodged under the Bahamas unit, are "fraudulent transfers" and rightfully owned by FTX.

According to court documents, liquidators for FTX Digital Markets, the Bahamas division of FTX Group, which is not bankrupt, have claimed ownership of FTX.com's property.

The filing claims that the liquidators' claims over the exchange are continuing to “balloon in size and volume,” and have extended to interfering with Alameda's preferential payments.

Without intervention from the US bankruptcy court, FTX Group believes that the liquidators will continue to assert unfounded claims that will harm FTX.com customers and other creditors of the FTX Debtors.

Chart of the Week: 30-day Correlation: BTC, ETH, S&P 500

This week’s Chart of the Week underscores a notable trend in May's daily returns correlation between BTC, ETH, and the stock market’s benchmark index, the S&P 500. The correlation between these assets hit a low not seen since August 2022.

The data suggests digital assets are becoming increasingly independent of traditional markets, amid mounting indications that tighter monetary policy and high-interest rates are nearing their apex.

State of the Crypto by Top Tier Exchange Volume

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