What is the role of SIPC in Coinbase?

1 answers

• Jan 12, 2022 · 3 years ago
  As an expert in the field, I can confirm that SIPC does indeed play a role in protecting investors on Coinbase. SIPC is a non-profit corporation established by Congress to protect customers of failed brokerage firms. In the case of Coinbase, SIPC provides limited protection for cash balances held by customers, up to $250,000 per customer. This means that if Coinbase were to go bankrupt, SIPC would step in to cover the loss of cash balances. However, it's important to note that SIPC does not protect against the loss of investments in cryptocurrencies themselves. So, while SIPC provides some level of protection, investors should still be aware of the risks associated with investing in digital assets.
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