SIPC
SIPP INDUSTRIES INC NEW
stock OTC

Money market funds like spaxx are essentially as good as insured as well. They are covered by SIPC insurance for broker-dealer risk and impropriety. The underlying assets, such as government securities and treasuries, are inherently risk free or close to it as they are what backs SIPC and FDIC insurance. Once you get to prime money markets that invest in commercial securities uninsured risk gets introduced.

Doesn't this reduce potential insurance coverage on accounts by up to $250k? For example, if a customer had $250k in excess cash, that was covered by FDIC. At the same time, if a customer had $500k in securities, that was covered by SIPC, for a total of $750k coverage.
Beyond that, I've always considered Schwab's resistance to paying relevant interest on excess cash to be stealing. Chuck knows this but is addicted to the free money and steadfastly refuses to update the policy.

I believe it falls under SIPC insurance. Which most brokerages, at least legitimate ones, have. Fidelity is solid.

Now there is none. Whole point of program banks was to spread the cash part out. SIPC in addition, is nothing like FDIC. Schwab al the already paid virtually nothing for cash even though they were making hand over fist. Again, timing is terrible

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FYI I received this email today. It seems FDIC insurance is being removed in favor of SIPC insurance with no increase in interest rate or coverage so there's no upside to it at all. You need to call in to keep the bank sweep and retain FDIC insurance.

I have been looking into it (and a lot of other places), here is a summary of my thoughts.
**Fidelity Crypto — Custody Pros and Cons**
**Pros**
* **Keys held in-house.** Custody is provided by Fidelity Digital Assets, N.A., a national trust bank with an OCC charter. No third-party crypto custodian in the chain — unlike Schwab, which subcustodies to Paxos.
* **Real bankruptcy protection.** Assets are treated as "financial assets" under UCC Article 8 (New York law), with Fidelity as securities intermediary and you as entitlement holder. Your holdings are not general assets of the firm and are not available to satisfy its creditors. This is a property interest, not unsecured-creditor status.
* **On-chain withdrawals work.** Deposits and withdrawals to external wallets went live in 2025. You can move bitcoin off-platform to a personal wallet.
* **Address allowlisting with a delay.** External wallets must be linked first, and link requests sit pending through an "activation period" plus compliance review before use. A real anti-theft control that many competitors lack.
* **No rehypothecation.** The agreement states Fidelity will not lend, pledge, or hypothecate customer assets, or use them to secure its own obligations.
* **Better cost-basis flexibility than expected.** FIFO is the default, but bitcoin transferred in from elsewhere is "non-covered," and you may designate its basis.
**Cons**
* **Omnibus wallets.** Holdings are commingled and fungible. You have no rights to any specific coin, wallet address, or private key, and no client-specific address to verify on-chain.
* **No insurance in the agreement.** The contract contains no insurance provision at all. Coverage figures quoted in press coverage aren't enforceable terms.
* **No proof of reserves.** Verification depends on audit reports, not the blockchain.
* **Broad lien and set-off.** Fidelity takes a first-priority security interest in your crypto *and* in every account you hold at any Fidelity entity — with authority to debit your brokerage account without notice, including by drawing on an associated margin line, and to have other Fidelity entities liquidate assets. Liquidation happens at their price with no advance notice.
* **Silent on death.** No transfer-on-death provision, no death or incapacity clause anywhere in the agreement. A significant gap for anyone thinking about estate planning.
* **Subcustodian option is reserved.** Fidelity may appoint a subcustodian on 60 days' notice. "Fidelity holds its own keys" is a current fact, not a contractual commitment.
* **Social engineering losses fall on you.** No liability for unauthorized transfers from compromised credentials, or for transfers induced by an imposter. Statement errors must be reported within **5 business days**.
* **No SIPC, no FDIC on crypto.** Cash is FDIC-insured at the depository; bitcoin has no equivalent protection.
* **1.00% trading fee**, and they keep the spread when the quoted network fee exceeds the actual cost.
**Bottom line:** Among mainstream brokerages, \*Fidelity is the strongest option for holding bitcoin\* — genuine trust-bank custody, Article 8 protection, working withdrawals, and real security controls. The trade-offs are pooled wallets, an aggressive cross-account lien, no contractual insurance, and no estate provisions. Anyone considering it should read Section 13 of the customer agreement before funding.

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I am also a non-US resident from a developing country investing in US ETFs. Because my country's government has maintained a low-interest-rate policy, fabricating and exaggerating inflation figures to deliberately avoid raising interest rates, the currency has been inflated in real estate and stocks, leading to a continuous depreciation of the currency's purchasing power. This has made living expenses increasingly burdensome for ordinary people, with food portions becoming smaller and less filling. I am very worried about my savings, so I opened an account with a mid-sized US online brokerage. I checked the SIPC website to confirm that this mid-sized online brokerage was listed before using their services. I did not choose Interactive Brokers or Charles Schwab because Interactive Brokers charges fees, and Charles Schwab does not offer automatic tax refunds for US bonds. I recommend using a legally registered US brokerage and checking if their name is on the SIPC list. This ensures that buying US ETFs or stocks will have SIPC protection.

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