Topic
Is crypto FDIC insured?
Last reviewed:
- Quick fact 1
FDIC deposit insurance does not cover crypto assets.
Source: FDIC: What the public needs to know about FDIC deposit insurance and crypto companies
- Quick fact 2
It does not protect you if a crypto exchange, custodian, broker or wallet company fails.
Source: FDIC: What the public needs to know about FDIC deposit insurance and crypto companies
- Quick fact 3
Crypto bought through a bank is still not FDIC insured.
Source: FDIC: Financial products that are not insured by the FDIC
The short lesson
FDIC insurance is a promise from the U.S. government about one thing: money in a deposit account at an FDIC-insured bank. If that bank fails, the FDIC pays back insured deposits.
Crypto is not a bank deposit. The FDIC says plainly that its insurance does not apply to crypto assets, just as it does not apply to stocks or bonds.
It also does not protect you if a crypto company fails. Exchanges, custodians, brokers, wallet apps and “neobanks” are not banks. If one of them goes bankrupt, freezes withdrawals or is hacked, FDIC insurance does not pay you back.
Watch for this pattern:
- “FDIC insured” on a crypto app. Sometimes only the cash part of an account sits at a partner bank. That cash may be covered, and only if the partner bank fails. The crypto is not covered.
- A crypto company that says your coins are “insured.” Ask: insured by whom, for what, and up to how much? A private policy is not FDIC insurance.
The lesson: for crypto, the protection is your own knowledge of who holds the keys. Read What is a crypto custodian? next.
Related terms
Go deeper in Lesson 7: What an exchange is
Common questions
Is my crypto on an exchange FDIC insured?
No. FDIC insurance does not cover crypto, and it does not cover a crypto exchange that fails.
Is the cash in my crypto app insured?
Sometimes. Cash may be held at a partner bank. Then it may be covered only if that bank fails, not if the app fails. Read the app’s terms.
Is crypto covered by SIPC?
SIPC protects certain securities and cash at member brokers. Most crypto is not covered. Ask the company in writing.
How do I keep crypto safer?
Learn who holds the keys, use strong account security, and never share your seed phrase.