The Federal Deposit Insurance Corporation (FDIC) of the United States has implemented a new rule that will impact the public perception of certain cryptocurrency firms. The FDIC’s board of directors has finalized regulations to address false advertising, misrepresentations of deposit insurance coverage, and misuse of the FDIC’s name or logo.
Starting in 2025, institutions insured by the FDIC will be required to display a black and navy blue sign on their websites, apps, brick-and-mortar bank locations, and certain ATMs. This is a change from the gold and black sign that has been in use since the 1930s.
The FDIC’s updated rule aims to prevent entities, including those in the crypto industry, from misleading customers into believing that their funds are FDIC-insured. The FDIC has taken multiple actions to address abuse by crypto firms, as investors have been misled by companies such as Gemini Earn, FTX US, and Voyager Digital.
In 2023, several banks with ties to crypto firms collapsed or were closed by authorities, leading to discussions about protecting user funds. The FDIC worked with the New York State Department of Financial Service to close Signature Bank, and Silicon Valley Bank, which held deposits from stablecoin issuer Circle and venture capital firm Sequoia Capital, also collapsed.
The Consumer Financial Protection Bureau has warned that payment apps allowing crypto transactions may not be FDIC-insured, putting funds at risk. The FDIC has referred to crypto activities as “novel and complex risks” for U.S. banks due to their uncertain legal and regulatory status.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Dennis Kelleher |
| Companies | New York State Department of Financial Service, Consumer Financial Protection Bureau, Circle, Voyager Digital, Gemini Earn, Better Markets, Silicon Valley Bank, Signature Bank, FTX US, Sequoia Capital |
| Currencies | US Dollar, Ethereum, Bitcoin, USDC, Tether |
| Securities | None |
