The SEC’s Office of Investor Education and Advocacy and the Division of Enforcement’s Retail Strategy Task Force are issuing this Investor Bulletin to educate investors about risks with accounts that pay interest on crypto asset deposits.
Crypto assets, including so-called cryptocurrencies, stablecoins, tokens, and other digital assets have been of increasing interest to retail investors over the last few years. This Investor Bulletin highlights the risks that may be involved in a recent financial product related to crypto assets—an interest-bearing account for crypto asset holdings.
Not The Same As Bank Deposits
These products may sound similar to interest-bearing accounts with a bank or credit union, but investors need to be aware that these crypto asset-related accounts are not as safe as bank or credit union deposits.
Banks and credit unions are regulated by both federal and state banking regulators. Banking rules limit the amount of risk that banks and credit unions are allowed to take with your deposited funds. These rules are designed to decrease the possibility that your bank or credit union becomes insolvent and unable to provide you your funds when you want to withdraw those funds.
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