WASHINGTON, DC—Dennis M. Kelleher, co-founder, president and CEO of Better Markets issued the following statement in response to the Federal Deposit Insurance Corporation (FDIC). Board of directors meeting finalize a rule titled “Official FDIC Signs and Advertising Requirements, False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC Name or Logo.”
“FDIC deposit insurance is the gold standard for trust and protection, which is why many in the cryptocurrency industry want to deceptively, if not falsely, suggest to cryptocurrency investors that their money is protected by the FDIC. That false comfort not only harms investors, but also the insurance program, insured banks, and the banking system in general, as people lose faith in the FDIC. That is what the current rule seeks to prevent.
“While the rule finalized today is not limited to the cryptocurrency industry, cryptocurrency abuse has been rampant, forcing the FDIC to take multiple actions to stop it. As detailed in this Better Markets report comment letter, Gemini Earn, FTX US, Voyager Digital and other crypto companies misled investors into believing their investments were FDIC insured. “We applaud the FDIC’s action to update and strengthen the rules to address this misconduct.”
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Better Markets is an independent, nonpartisan, nonprofit organization founded in the wake of the 2008 financial crisis to promote public interest in the financial markets, support Wall Street financial reform, and make our financial system work for everyone. Americans. again. Better Markets works with allies, including many in the financial sector, to advance pro-market, pro-business and pro-growth policies that help build a stronger, more secure financial system that protects and promotes jobs, savings, retirements and more. the Americans. For more information, visit www.bettermarkets.org.
