Is crypto insured? FDIC, SIPC and what they do not cover

In the United States, crypto is not covered by the government-backed schemes that protect bank and brokerage accounts. The Federal Deposit Insurance Corporation insures bank deposits. The Securities Investor Protection Corporation protects securities at failed brokerages. Neither treats coins on an exchange or in a wallet as covered.

Does FDIC insurance cover crypto?

No. The FDIC insures deposits, such as checking and savings accounts, at banks that are members. The standard limit is $250,000 per depositor at each insured bank. The cover applies when the bank itself fails.

The agency's guidance, first set out in a July 2022 fact sheet and still reflected in its consumer pages as of October 2026, says FDIC insurance does not apply to crypto assets. It also does not protect against the failure, theft or fraud of a non-bank company, including a crypto exchange, custodian or wallet provider.

Confusion often comes from marketing. A crypto firm may keep customers' US dollar balances at a partner bank that is FDIC-insured. That arrangement can protect those dollars if the bank fails. It does nothing if the crypto firm fails, and it never covers the crypto. The FDIC has told companies to stop suggesting otherwise.

Does SIPC cover crypto?

Generally not. SIPC protects customers of a member brokerage that fails, up to $500,000, including a $250,000 limit for cash. Its job is to restore missing stocks, bonds and cash. It does not cover a fall in the value of an investment.

SIPC states that digital asset securities that are unregistered investment contracts do not count as securities under its governing law, even when held at a member firm.

Shares in a spot bitcoin ETF are a different thing from coins. They are registered securities held in an ordinary brokerage account. SIPC's protection against a brokerage failing never extends to a drop in price.

What do exchanges mean by "insurance"?

Some exchanges say customer assets are insured. This usually means the company has bought a private policy against theft from its own systems. Such policies have limits that may be small next to the total held, and the terms are rarely published in full.

They typically do not cover a customer whose own account is taken over through phishing or a stolen password. They do not cover the exchange going bankrupt. When FTX collapsed in 2022, customers became creditors in a bankruptcy case.

What about crypto held in a personal wallet?

There is no insurer at all. A person who holds their own keys is fully responsible for them, as explained in custodial vs non-custodial wallets. The Federal Trade Commission also notes that crypto payments typically cannot be reversed.

Other countries run their own protection schemes with their own rules. The rules differ by country and change over time, so the scheme's official website or a qualified professional is the place to confirm what applies.