WASHINGTON, D.C.— Dennis M. Kelleher, Co-founder, President, and CEO of Better Markets issued the following statement in response to a Federal Deposit Insurance Corporation (FDIC) Board Meeting finalizing a rule entitled “FDIC Official Signs and Advertising Requirements, False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC’s Name or Logo.”
“The FDIC deposit insurance is the gold standard for trust, confidence, and protection, which is why too many in the crypto industry want to misleadingly if not falsely suggest to crypto 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 broader banking system as people lose faith in the FDIC. That’s what today’s rule aims to stop.
“While the rule finalized today isn’t limited to the crypto industry, abuse by crypto has been rampant, forcing the FDIC to take multiple actions to stop it. As detailed in this Better Markets’ comment letter, investors were misled by Gemini Earn, FTX US, Voyager Digital, and other crypto firms into believing their investments were FDIC insured. We applaud the FDIC’s action to update and strengthen the rules to address this misconduct.”
Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.