NCUA issues FAQs on share insurance coverage for cryptocurrency

The NCUA has added a new financial technology and digital assets section to its website. The webpage includes frequently asked questions (FAQs) about share insurance coverage and custody for cryptocurrencies and digital assets, as well as information about the agency’s Financial Technology Team.

Of note, the FAQs clarify that the National Credit Union Share Insurance Fund does not insure digital assets or cryptocurrencies. By federal law, the Share Insurance Fund only insures shares and deposits held in federally insured credit unions.

The FAQs also note that federal credit unions are not authorized to serve as a custodian for cryptocurrencies and other digital assets. In addition, whether federally insured, state-chartered credit unions chartered in a particular state have the authority to serve as a custodian for cryptocurrencies and other digital assets depends on state law and regulation. More information can be found on the share insurance FAQ page.

 

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