The U.S. Securities Exchange Commission issued an investor bulletin warning that cryptocurrency asset deposits aren't as safe as interest-bearing accounts with a bank of credit union even though the crypto product descriptions appear similar to bank accounts. "Companies offering interest-bearing accounts for crypto assets do not provide investors with the same protections as do banks or credit unions, and crypto assets sent to those companies are not currently insured," the SEC said in the bulletin. The agency points out that bank and credit union deposits are insured by the Federal Deposit Insurance Corp. and the National Credit Union Administration. Should a bank or credit union become insolvent, deposit insurance covers customers' deposits up to a certain amount — $250K for FDIC-insured institutions. Also, securities accounts held with a U.S.-registered broker may be insured by the Securities Investor Protection Corp. up to a certain amount for losses related to a broker
