The Federal Deposit Insurance Corporation (FDIC) of the United States adopted a rule governing the use of its official signs and advertising in a move that could affect the public perception of certain crypto firms.
In a Dec. 20 announcement, the FDIC said its board of directors had finalized regulations clarifying “false advertising, misrepresentations of deposit insurance coverage, and misuse of the FDIC’s name or logo.” Rather than its gold and black sign introduced in the 1930s, institutions insured by the FDIC will be required to display a black and navy blue sign on all websites and apps, brick-and-mortar bank locations and certain ATMs starting in 2025.
According to the FDIC, the last significant update of its sign and advertising rules was in 2006. The government corporation clarified that the updated rule aimed to address entities potentially misleading customers that their funds were FDIC-insured.
“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,” said Dennis Kelleher, president and CEO and of nonprofit organization Better Markets. “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.”
Related: Crypto adoption: How FDIC insurance could bring Bitcoin to the masses
In 2023, several banks with ties to crypto firms collapsed, were shuttered by authorities or voluntarily liquidated, leading to discussions among la
Go to Source to See Full Article
Author: Turner Wright
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
