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Account protection language is often misunderstood. Brokerage accounts, bank accounts, and crypto accounts are not protected in the same way.
SIPC is not market-loss insurance
SIPC protection is designed for missing customer assets if a SIPC-member brokerage fails, within coverage limits. It does not protect against a stock, ETF, fund, or option losing value in the market.
FDIC insurance is for bank deposits
FDIC insurance generally applies to eligible bank deposits at insured banks, not securities or crypto assets. Cash sweep programs require their own review.
Crypto custody is different
Crypto platform risk can include custody, cyber, liquidity, withdrawal, regulatory, and counterparty risks. Users should understand whether they can withdraw assets and what protections actually apply.