FDIC Implements Stricter Rules on Advertising for Crypto Firms

    The FDIC has enacted stringent rules to curb misleading advertising by crypto firms, requiring a new sign display and cracking down on false claims of FDIC insurance. This move addresses rampant abuse within the crypto space, impacting notable firms like Gemini Earn, FTX US, and Voyager Digital.

    The Federal Deposit Insurance Corporation (FDIC) has taken a significant step in curbing misleading practices within the crypto industry. In a recent announcement, the FDIC revealed updated regulations targeting false advertising and misuse of its name. Effective from 2025, FDIC-insured institutions must prominently display a new black and navy blue sign, replacing the longstanding gold and black sign in use since the 1930s.

    While the FDIC asserts that the updates are not specifically aimed at the crypto sector, the move follows a series of allegations against notable crypto firms like Gemini Earn, FTX US, and Voyager Digital. These firms faced accusations of misleading investors regarding FDIC insurance, prompting the FDIC to strengthen rules. The industry has recently faced heightened scrutiny, especially in the aftermath of bank closures tied to crypto firms, emphasizing the need for updated regulations to protect consumers.

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