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FDIC Finalizes New Rules to Tackle Crypto Related Fraud and Misleading Advertising

The Federal Deposit Insurance Corporation (FDIC) recently announced new regulations targeting misleading and fraudulent claims in the crypto sector.The updated sign and advertising rules aim to prevent financial institutions from falsely implying that crypto investments are FDIC insured or making other unauthorized claims.

Key Takeaways

  • Starting in 2025, FDIC-insured banks will have to display a new sign with navy blue and black colors instead of the gold and black sign used currently.
  • The regulations affect bank websites, apps, physical locations and some ATMs.
  • The last major update to the FDIC’s signage and advertising rules was in 2006.
  • The FDIC was prompted to act due to abuses in the crypto sector, where firms misled customers into thinking crypto funds were FDIC insured.
  • The rules aim to improve transparency and consumer protection related to crypto investments.

The FDIC announced the new rules targeting false advertising, misrepresentations of deposit insurance coverage and unauthorized use of its name or logo. Companies in the crypto industry like Gemini Earn, FTX US and Voyager Digital have misled customers, leading the FDIC to take action. The FDIC said the update aims to prevent misleading claims that can harm consumers.

What the New Rules Change

  • FDIC insured banks must replace their gold and black insurance signs with navy blue and black signs starting in 2025.
  • Websites, apps and physical locations must comply with the updated advertising rules.
  • The regulations target false claims of FDIC insurance for crypto products.

Why the Changes Were Made

The FDIC cited several reasons for the rule changes, including abuses in the crypto sector where firms misled customers into thinking crypto funds were FDIC insured. The FDIC views crypto as presenting “novel and complex risks” for banks and aims to improve transparency and investor protection through the new regulations.


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