<span style="font-weight: 400">The US Securities and Exchange Commission (SEC) notifies the investors about the risks associated with interest-yielding crypto accounts. The investors must be well aware of the 'uncertainty accounts paying interest on crypto-asset deposits.' The warning corresponds to the 1st prosecution plans of the agency that's against crypto lending platforms.</span>
<h2><strong>SEC Cautions About Risks Linked with Interest-Bearing Crypto Accounts</strong></h2>
<span style="font-weight: 400">On Monday, the US Securities declared about the risks associated with a crypto investor account. This announcement was to inform the investors about risks with accounts that pay interest on crypto-asset deposits. </span><span style="font-weight: 400">On Monday itself, the SEC further announced that it has invoiced cryptocurrency lending platform Blockfi for failing to make a record of its crypto lending service. Blockfi has said 'yes' to reimburse $100 million as a penalty amount. Blockfi has agreed to settle the charges with the SEC and 32 state regulators.</span>

<span style="font-weight: 400">The SEC clarified that 'a benefiting crypto account with high yielding interest asset holdings is unsafe; because of bank or credit union deposits.' Lately, the securities watchdog recognized banks and credit alliances being controlled by both federal and state banking actuators. Moreover, deposits at banks or federal credit unions are financed by the Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA). </span>
<h2><strong>Alert Issued By SEC </strong></h2>
<span style="font-weight: 400">Firms that provide interest-bearing accounts for crypto-assets do not offer the investors security. The required security is availed by the banks or credit unions. Also, the crypto assets consigned to those companies aren't insured. Crypto assets within an interest-bearing account are expected to be used for funding in several crypto products or activities. This will count in lending programs where the crypto assets are offered as a loan to the borrowers. </span>

SEC Forewarns Counter Benefiting Crypto Accounts — Says They're Riskier as Compared to Bank Deposits

The U.S. Securities and Exchange Commission (SEC) notifies the investors about the risks associated with interest-yielding crypto accounts.

Gitumani is a blockchain enthusiast as she keeps a tab on the recent happenings pertaining to the crypto industry. She aims to provide quality content in blockchain and crypto domain. She is a financial content writer too and has worked on several financial projects related to the stock market news, fundamental research, and technical analysis for several websites.

SEC Forewarns Counter Benefiting Crypto Accounts — Says They're Riskier as Compared to Bank Deposits

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