Better Market CEO Points to Crypto Market Abuses as Reasons for FDIC Rule Amendment
Better Market CEO lambasts frequent market abuses and false advertising strategies of digital asset firms as a major reason for the Federal Deposit Insurance Corporation’s (FDIC) rule change to protect investors.
In a Dec 20 press release, the CEO reacted to the official FDIC statement amending its rules to clamp down on misleading and false insurance suggestions in financial markets.
“FDIC Official Signs and Advertising Requirements, False Advertising, Misrepresentation of Insured Status, and Misuse of the FDIC’s Name or Logo.”
According to him, the FDIC deposit insurance is the gold standard that brings trust to all stakeholders in finance including the final depositors leading to bad actors forging or falsely claiming that they are insured by the FDIC.
With some players in the crypto market making false claims, these claims harm all parties including investors, insurance schemes, and the banking system, he added listing the effect of misleading information on consumers.
“ too many in the crypto industry want to misleadingly if not falsely suggest to crypto investors that their money is protected by the FDIC. That false comfort not only harms investors, but also the insurance program, insured banks, and the broader banking system as people lose faith in the FDIC.”
Furthermore, he noted that the rule change is not limited to the crypto market but because of rampant occurrences, the FDIC has acted to stop it. Buttressing his stance, he highlighted the role of FTX US, Gemini Earn, and Voyager Digital in misleading users that deposits were insured by the FDIC.
This year has witnessed a massive surge of cryptocurrency and decentralized finance (DeFi) market regulations as authorities cite the need to protect investors and
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