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Digital Assets

Digital Assets | FDIC

By:

Hugh Meyer

While the digital asset markets have calmed over the last month,  the news flow and activity has not abated. Two of the more recognizable names in crypto lending, Celsius and Voyager are under significant scrutiny by regulators. This past Friday, the FDIC issued a cease-and-desist order to Voyager- regarding any “false and misleading” statements regarding deposit insurance. The announcement by the FDIC is critical and will be a part of the future framework for digital asset regulation.

This past Friday, the FDIC released an announcement regarding not just crypto lender, Voyager, but a reminder to all investors, “FDIC insurance does not protect a non-bank’s customers against the default, insolvency or bankruptcy of any non-bank entity, including crypto custodians, exchanges, brokers, wallet providers, or “neobanks.”  It is incumbent upon Congress and regulators to bring clarity and transparency.

Why this matters to you?

The downfall of Celsius and Voyager, while incredible difficult for the respective customers,  has only elevated the importance of a #digital asset framework yesterday. Celsius may or may not have wrongly lent out client assets, which unfortunately lost most or all of their respective value. Voyager may or may not have alluded to insurance against client deposits. These are serious matters, which need stable regulation and comprehensive education for investors. Voyager is not an FDIC insured bank, and can’t provide federal insurance towards client losses. We have included the full FDIC announcement below.

Please reach out to Rich Barnett or myself with any questions.

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