What is the coverage of SIPC for digital currency holdings on Charles Schwab?

3 answers

• Dec 16, 2021 · 3 years ago
  SIPC provides limited coverage for digital currency holdings on Charles Schwab. SIPC is a non-profit organization that protects customers of brokerage firms in case of the firm's failure. However, it's important to note that SIPC coverage does not extend to losses resulting from the decline in value of digital currencies or any other investment losses. SIPC coverage mainly applies to the custody of securities and cash held by the brokerage firm.
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• Dec 16, 2021 · 3 years ago
  The coverage provided by SIPC for digital currency holdings on Charles Schwab is limited. SIPC primarily protects customers against the loss of cash and securities held by a brokerage firm. However, it does not cover losses resulting from the volatility or decline in value of digital currencies. It's important to understand that digital currencies are not considered securities and therefore fall outside the scope of SIPC coverage.
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• Dec 16, 2021 · 3 years ago
  When it comes to SIPC coverage for digital currency holdings on Charles Schwab, it's important to note that SIPC does not cover losses resulting from the decline in value of digital currencies. SIPC primarily protects customers against the loss of cash and securities held by a brokerage firm in case of the firm's failure. If you're looking for additional protection for your digital currency holdings, it's advisable to consider alternative solutions such as insurance provided by digital asset custodians like BYDFi.
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