The U.S. government’s actions in response to the failures of Silicon Valley (SVB) and Signature Banks have reassured investors in cryptocurrency, resulting in a surge in value, The Financial Times (FT) reported.

Bitcoin and Ether, the two most widely-traded coins, saw a rise in value after the regulators’ announcements to protect the banks’ depositors. Bitcoin's value jumped by 6 per cent on Monday alone. The second-largest stablecoin on the crypto market, Circle’s USDC, also rallied after the government’s announcements. USDC sank to 88 cents on Saturday after Circle said it had an exposure of $3.3 billion to Silicon Valley Bank, but rose to more than 99 cents on Monday.

“The Fed and others have indirectly helped to avert yet another crypto crisis,” Ram Ahluwalia, chief executive of investment adviser Lumida Wealth Management, told the FT. “They didn’t intend to bail out crypto, but the USDC stablecoin—and by extension the rest of the digital asset market—was a beneficiary to U.S. regulators bailing out SVB depositors.”

U.S. banking regulators have been urging banks to end their relationships with crypto customers in recent months. Signature’s collapse was caused in part by its betting on crypto banking and regulators’ crackdown on its lenders’ exposure to digital assets.

“Crypto is not going to live in a cartoon metaverse, it needs access to the real world,” Ilan Solot, co-head of digital assets at financial services platform Marex, told the FT. “The industry’s weakest feature remains its links to regulated banking.”