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What does FDIC insurance mean for crypto?
FDIC insurance covers deposits at insured US banks and savings associations, and pays only if the bank fails. It does not cover crypto assets, and it does not protect against the failure of non-bank companies such as crypto exchanges, custodians, brokers or wallet providers.
What it means for you
In the US, losses from a crypto platform's failure, theft or fraud are not covered by FDIC deposit insurance. The FDIC has said some crypto companies misrepresented that their products were FDIC-insured; its BankFind tool shows whether an entity is an insured bank, and it runs a portal for complaints about misrepresented coverage.
A common mistake: “My crypto exchange account is FDIC insured like a bank account.”
In fact: In the US, the FDIC insures only deposits at insured banks, and only if the bank fails. It does not insure crypto assets or protect against the failure of a crypto exchange, custodian or wallet provider.
How it works
By federal law the FDIC insures only deposits — checking, savings and certificates of deposit — held in insured banks and savings associations, and pays only after an insured bank fails, for deposits held there at that time. Deposit insurance does not apply to stocks, bonds, money market mutual funds, other securities, commodities or crypto assets, does not cover theft or fraud, and does not protect against the insolvency of any non-bank. The GENIUS Act of 2025 provides that payment stablecoins are not subject to FDIC deposit insurance or backed by the full faith and credit of the United States, and makes representing otherwise unlawful.
Sources: FDIC fact sheet: What the public needs to know about FDIC deposit insurance and crypto companies, GENIUS Act, Public Law 119-27 (govinfo compilation) · checked 4 October 2026
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Educational content, not financial advice. Written by hand and checked against the source named above. Something wrong? Tell us and we reply within two business days.