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<p class="is-style-lead">In an Oct. 16 update to Binance.US’s terms of service for the exchange, a clarification was made that digital assets do not qualify for FDIC insurance coverage.</p> 
<p>The update also specifies that users must convert U.S. dollars into stablecoins or other cryptocurrencies before making withdrawals.</p> 
<h2 class="wp-block-heading" id="u-s-dollar-funds-to-stablecoin">U.S. dollar funds to stablecoin</h2> 
<p>As part of the update, users will note new additions under the section “BAM Fiat Wallet.”&nbsp;</p> 
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 <img decoding="async" loading="lazy" width="1024" height="233" src="https://crypto.news/app/uploads/2023/10/Screen-Shot-2023-10-17-at-9.22.09-AM-1024x233.png" alt="Binance US alters FDIC Coverage for crypto deposits - 15" class="wp-image-14205379">
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  Binance.US Terms of Use | Source:
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  Binance.US Terms of Use | Source: <a href="https://www.binance.us/terms-of-use" data-type="link" data-id="https://www.binance.us/terms-of-use" target="_blank" rel="noopener">Binance.US</a>
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<p>The exchange now states that all U.S. dollar funds associated with your BAM Fiat Wallet are not eligible for FDIC insurance protections. In the event a user wishes&nbsp; to withdraw U.S. dollar funds from an account, they will have to convert such U.S. dollar funds to stablecoin or other digital assets, which can subsequently be withdrawn.</p> 
<p> You might also like: <a href="https://crypto.news/sec-and-binance-us-in-legal-dispute-over-customer-asset-management/"> SEC and Binance.US in legal dispute over customer asset management </a> </p>  
<h2 class="wp-block-heading" id="following-a-consumer-alert">Following a consumer alert</h2> 
<p>The update comes after the release of a consumer alert from the Federal Trade Commission (FTC) dated Oct. 12.</p> 
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 <div class="wp-block-embed__wrapper"> <iframe title="FDIC insurance: Safeguarding your cash" width="1020" height="574" src="https://www.youtube.com/embed/C_OabxeQSfM?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe> 
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<p>As part of the alert, the FTC reiterates that if a bank holds FDIC insurance, users’ deposits are safeguarded up to $250,000 if the bank were to fail. However, the articles make it clear that when it comes to funds deposited with a cryptocurrency-based financial services provider, they do not enjoy FDIC insurance or protection if the crypto company faces financial difficulties.</p> 
<p> Read more: <a href="https://crypto.news/binance-us-unveils-new-token-listing-policy-with-sui-under-evaluation/"> Binance.US unveils new token listing policy, with SUI under evaluation </a> </p>

Binance US alters FDIC Coverage for crypto deposits

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