The Federal Deposit Insurance Corporation (FDIC) is telling banks to keep an eye on crypto companies and any potential deceptive deposit insurance claims.
In a new advisory note, the FDIC says it’s concerned about the risks misleading deposit insurance claims pose to investors.
According to the regulatory body, confusing representations of deposit insurance may lead customers to believe they are insured when they aren’t.
“The FDIC is concerned about the risks of consumer confusion or harm arising from crypto assets offered by, through, or in connection with insured depository institutions (insured banks). Risks are elevated when a non-bank entity offers crypto assets to the non-bank’s customers, while also offering an insured bank’s deposit products.
Inaccurate representations about deposit insurance by non-banks, including crypto