The overnight collapse of two major traditional banks \u2014 Silicon Valley Bank (SVB) and Signature Bank \u2014 triggered a series of events that impacted millions of businesses, venture capitalists and bottom-line investors alike. However, United States President Joe Biden assured taxpayers that they would not feel the burn as the federal government takes action to protect depositors.<\/p>\n
On March 11, major stablecoins, including USD Coin (USDC), USDD (USDD) and Dai (DAI), depegged from the U.S. dollar\u00a0after Circle announced that $3.3 billion of its $40 billion reserves were stuck in SVB. <\/p>\n
Knowing that numerous other entities tied to the collapsing banks may suffer irreparable damage, Biden announced, on March 12, his commitment to hold the responsible people accountable for the event. <\/p>\n
While the federal government\u2019s proactive approach to minimizing damage was appreciated, many pointed out that it\u2019s the taxpayers that would ultimately suffer the depositors\u2019 bailout. On March 13, Biden addressed concerns through a tweet:<\/p>\n
Biden assured American citizens that the traditional financial system was safe after the federal intervention. He further stated that taxpayers would not be burdened for saving SVB and Signature Bank depositors:<\/p>\n
\u201cPeople\u2019s deposits will be there when they need them \u2013 at no cost to the taxpayer.\u201d<\/p><\/blockquote>\n
However, Biden\u2019s followers on Twitter were not completely sold on this idea, as many pointed out that \u201ceverything you do or touch costs the taxpayer!\u201d<\/p>\n