The overnight collapse of Silicon Valley Bank (SVB) and Signature Bank-, the two main traditional financial institutions, caused a series of events that seriously affected millions of companies, venture capitalists and ethical bottom line investors. But President Joe Biden assured taxpayers that they would not feel burns when the federal government acted to protect depositors.

On March 11th, Circle announced that $3.3 billion of its $40 billion reserve was trapped in SVB, and key stable currencies, including USDC, USDD (USDD) and DAI (DAI), were pegged to the US dollar.

Aware that other physical lines associated with banks facing failure could be irreparably affected, Biden announced on March 12 that he blamed the person responsible for the incident with his performance pledge.

While the federal government has been praised for its aggressive approach to minimizing damage, many stress that depositors end up being bailed out by taxpayers. On March 13, Biden responded to everyone's anxiety based on an article:

Biden assured American citizenship that the traditional financial system was safe after federal intervention. He further said that taxpayers would not be under pressure to rescue SVB and Signature Bank depositors:

"Volkswagen's savings will show up in the process of what he needs-- it's not easy for taxpayers to put all the costs into it."

But Biden's Twitter followers may not approve of the idea, as many stress, "everything you do or touch costs taxpayers' money!"

In addition, the Federal Reserve Board (Federal Reserve) has closely investigated the factors that led to the collapse of SVB, including how it supervises and regulates the failed financial company.

As previously reported by Cointelegraph, SVB was shut down by California's Department of Financial Industry maintenance and Innovation on March 10, unable to provide specific reasons why the financial institution had to shut down. However, people suspect that SVB is on the verge of collapse, mainly because of the serious liquidity problems related to the important losses of government debt investment and unprecedented access to cash.