I wrote the other day about the possible downfall of Silvergate, a bank associated with Cryptocurrency.  Today it fell and stated it was liquidating https://www.wsj.com/articles/crypto-bank-silvergate-to-shut-down-repay-deposits-4bc2a469. 

This news led to comments on Twitter from some powerful people, including Senator Elizabeth Warren. She made comments about investors being "made whole" and "regulators should step up against crypto risk."  I have to say, I do not always agree with the Senator, but in this case I do. It appears Silvergate will return investments to investors. That is great news. I also agree with the Senator's assessment that we need regulation. I read a lot about the pushback from some involved in cryptocurrency about regulation. Cryptocurrency had a lot fo time to get it right and to provide safeguards for investors. They failed to do so. it is time for the adults to enter the room and clear out the "bad actors" in the space. This WILL be better for the long term health of cryptocurrency.

Now, the reason I think Silvergate failing will be a good thing in the long run is the same reason why I think the fall of FTX is good for cryptocurrency in the long run. We need honest and healthy business involved in cryptocurrency .We need all of the fraudsters and criminals to be weeded out as much as possible so we can have healthy and the market booms.  This "slow burn" of failures is keeping the market down for longer than it needs to. It felt good to have a month or two of the cryptocurrency market rising. Now comes the inevitable market downturn with this bad news.  

Another reason why I think the failure of Silvergate is a good thing in the long run is that other more established and traditional banks and investment firms investing and serving cryptocurrency will build inherent trust in cryptocurrency. We need that cache! There is long term health hear, and the rise is coming if you can be patient.