FDIC issues fact sheet, advisory on crypto deposit insurance claims

The FDIC published a fact sheet to consumers and an advisory to financial institutions on FDIC deposit insurance and crypto companies.

Fact Sheet: The fact sheet says some crypto companies have misrepresented FDIC deposit insurance for crypto products and addresses common and emerging misconceptions. It notes that deposit insurance does not apply upon the failure of a nonbank and does not protect consumers with nondeposit products.

Advisory: The advisory reminds FDIC-insured banks dealing with crypto companies to confirm and monitor that these companies do not misrepresent the availability of deposit insurance.

Voyager Letter: The release follows a joint letter from the FDIC and Federal Reserve Board demanding that crypto brokerage firm Voyager Digital cease and desist from making false and misleading statements regarding its FDIC deposit insurance status.

Congressional Debate: With the crypto debate continuing in Congress, ICBA last week called on the Senate Banking Committee to ensure crypto regulations are comprehensive and effective. After ICBA previously expressed concerns that the House Financial Services Committee planned to take up last-minute crypto legislation that hasn’t been publicly vetted, the committee delayed the measure, as reported by The Wall Street Journal, Politico, and Reuters.