# Deposit insurance

Working definition: insurance of bank deposits up to a limit; the FDIC says it does not cover crypto assets.

Canonical: https://achivx.org/glossary/deposit-insurance/
Updated: 2026-11-01

Deposit insurance (working definition) protects bank deposits up to a set limit. FDIC deposit insurance covers $250,000 per depositor, per FDIC-insured bank, for each account ownership category, and the FDIC lists crypto assets as not covered. Tether says its tokens are not subject to FDIC or SIPC protection, and Circle says USDC held in a Circle Mint account is not subject to deposit insurance protection. The GENIUS Act says payment stablecoins shall not be subject to FDIC deposit insurance.

## What the sources say

| Source | Quote | Link |
|---|---|---|
| FDIC: coverage limit | "FDIC deposit insurance covers $250,000 per depositor, per FDIC-insured bank, for each account ownership category." | [fdic.gov](https://www.fdic.gov/resources/deposit-insurance/understanding-deposit-insurance) |
| FDIC: not covered list | "Not Covered Stock investments Bond investments Mutual funds Annuities Life insurance policies Safe deposit boxes or their contents U.S. Treasury bills, bonds, or notes Municipal securities Crypto assets" | [fdic.gov](https://www.fdic.gov/resources/deposit-insurance/understanding-deposit-insurance) |
| Tether terms: no FDIC/SIPC protection | "Tether Tokens are not subject to Federal Deposit Insurance Corporation or Securities Investor Protection Corporation protections, or to analogous protections in other jurisdictions." | [tether.to](https://tether.to/en/legal/) |
| Circle USDC terms: no deposit insurance | "USDC held in your Circle Mint account is not subject to deposit insurance protection" | [circle.com](https://www.circle.com/legal/usdc-terms) |
| GENIUS Act sec. 4(e)(1): no deposit insurance | "(1) In general.--Payment stablecoins shall not be backed by the full faith and credit of the United States, guaranteed by the United States Government, subject to deposit insurance by the Federal Deposit Insurance Corporation, or subject to share insurance by the National Credit Union Administration." | [govinfo.gov](https://www.govinfo.gov/content/pkg/PLAW-119publ27/html/PLAW-119publ27.htm) |
| FDIC press release (7 April 2026): pass-through insurance on reserve deposits (proposal) | "In addition, the proposed rule would address the applicability of pass-through insurance to deposits held as reserves backing payment stablecoins and would clarify that tokenized deposits that satisfy the statutory definition of “deposit” would be treated no differently under the Federal Deposit Insurance Act than any other types of deposits." | [fdic.gov](https://www.fdic.gov/news/press-releases/2026/fdic-approves-proposal-implement-genius-act-requirements-and-standards) |
| Türkiye Law 7518: crypto-assets at banks outside deposit insurance | "Bankalar nezdinde saklanan kripto varlıklar ile müşterilere ait bu kapsamdaki nakitler 5411 sayılı Kanunun 63 üncü maddesinde düzenlenen mevduat ve katılım fonunun sigortalanması hükümlerine tabi değildir." | [resmigazete.gov.tr](https://www.resmigazete.gov.tr/eskiler/2024/07/20240702-1.htm) |

## Related terms

- [Payment stablecoin (GENIUS Act)](/glossary/payment-stablecoin/)
- [Issuer failure / insolvency](/glossary/issuer-failure/)
- [Reserve / reserve assets](/glossary/reserve-assets/)
- [Custody (custodial / self-custody)](/glossary/custody/)

## See also

- Explainer: [Are USDT and USDC insured, like a bank deposit?](https://achivx.com/academy/issuers/are-usdt-and-usdc-insured.html)
- Review: [revain.org/coins/usdt/](https://revain.org/coins/usdt/)
- Review: [revain.org/coins/usdc/](https://revain.org/coins/usdc/)

Checked against the sources on 2026-11-01.

## revain.org
- https://revain.org/coins/usdt/
- https://revain.org/coins/usdc/

## Sources
- https://www.fdic.gov/resources/deposit-insurance/understanding-deposit-insurance
- https://tether.to/en/legal/
- https://www.circle.com/legal/usdc-terms
- https://www.govinfo.gov/content/pkg/PLAW-119publ27/html/PLAW-119publ27.htm
- https://www.fdic.gov/news/press-releases/2026/fdic-approves-proposal-implement-genius-act-requirements-and-standards
- https://www.resmigazete.gov.tr/eskiler/2024/07/20240702-1.htm