[discodave]

Coinbase and Kraken are not registered as banks, and do not offer FDIC insured accounts.

> Do banks require SEC registration to offer interest-bearing Non-Security Deposit products?

No, because they are registered and regulated as banks.

[westurner]

Whether USD deposits have FDIC protection (250K (x2 *) or the balance of the account, whichever is lower; since the Great Recession [1] (before that it was 100K per account))

[1] https://en.wikipedia.org/wiki/Federal_Deposit_Insurance_Corp...

In 1999, GLBA [2] changed the 1933 Glass-Steagall rule [3] that had prevented banks from investing Savings deposits in order to ensure that they would have enough to prevent another run. (As depicted in "It's a Wonderful Life" (1946); Clarence the angel or Mr. Potter's Potterville)

I'm not sure that it's anywhere explicitly stated that the banks' socialist FDIC corporation justified allowing investing of savings deposits. They created a large shared prepaid credit line for themselves in order to operate safely.

Banks invest in non-securities; without any agreement for future performance.

Banks invest in treasuries, which are tokenizable non-security deposits.

(Some time later, the dotcom boom busted and the US went to war/oil/defense instead of clean energy (like the solar panels that were on the roof until 1980 (due to the oil crisis CPI hostage situation, when it became necessary to defensively meddle in the ME with blowback left for Obama to handle, and not pay for)))

[2] https://en.wikipedia.org/wiki/Gramm%E2%80%93Leach%E2%80%93Bl...

[3] https://en.wikipedia.org/wiki/Glass%E2%80%93Steagall_legisla...

https://help.coinbase.com/en/coinbase/other-topics/other/cli... :

> How is client cash stored at Coinbase? The vast majority of Coinbase client cash is stored in FDIC-insured bank accounts and U.S. government money market funds to keep it safe and liquid. Like all assets on Coinbase, we hold client cash 1:1 and your assets are your assets.

https://support.kraken.com/hc/en-us/articles/360001372126-Ar... :

> Are balances stored on Kraken insured? Cryptocurrency exchanges do not qualify for deposit insurance programs because exchanges are not savings institutions. Exchanges are not even meant to be cryptocurrency wallets.

https://www.investopedia.com/kraken-vs-coinbase-5120700 says that Kraken ended staking services in the US in February 2023.

There is yet no FDIC protection for any stablecoin, and yet no CBDC (just FedNow), but US banks are specifically allowed to provide crypto custody services.