On July 29, 2022, the FDIC issued a Financial Institution Letter (FIL) to address certain misrepresentations about FDIC deposit insurance by some crypto companies. Through the FIL, the FDIC issued an Advisory to FDIC-insured institutions to address misconceptions about the scope of deposit insurance coverage and related concerns. The FDIC also published in its website a Fact Sheet to clarify for customers of non-bank entities, such as crypto companies, and the public generally, that deposit insurance does not cover non-deposit products, including crypto assets.
In a previous blog post, we wrote about the FDIC and Federal Reserve ordering Voyager to cease false representations of its deposit insurance status.
Read the FDIC’s FIL here.
The FDIC Crypto Advisory can be found here.
The FDIC’s Deposit Insurance Fact Sheet can be found here.