FDIC Eligible Assets

Definition ∞ FDIC Eligible Assets are financial assets that qualify for insurance coverage provided by the Federal Deposit Insurance Corporation. This coverage protects depositors against the loss of their funds in the event of a bank failure. Eligibility is typically restricted to specific types of traditional bank deposits.
Context ∞ In crypto news, the concept of FDIC eligible assets is frequently referenced when discussing the regulatory status and consumer protection aspects of stablecoins and other digital assets. Most cryptocurrencies and stablecoins do not currently qualify for FDIC insurance, which is a critical point in debates about their safety and soundness. Regulatory bodies continue to assess how traditional financial protections might apply to novel digital asset structures.