Two financial regulatory agencies are threatening to crack down on cryptocurrency and other fintech firms that falsely suggest their institutions have deposit insurance.
The Federal Deposit Insurance Corp. adopted a rule Tuesday that outlines its authority to prohibit individuals and organizations from making misrepresentations about deposit insurance, or misusing the FDIC’s name or logo. Following the meeting, the Consumer Financial Protection Bureau issued an enforcement memorandum to the same end.
Although the agencies’ actions apply generally across the financial system, individual policymakers suggested that the crackdown is targeted at fintech and crypto firms.
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