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A comment on I just lost 1,400 BTC. Parent comment

Re:I just lost 1,400 BTC by tialaramex on Monday August 31, 2020 @03:00PM (#24334792)
Well the fun part is that the way it's different is that there would be a bank account with your money in it, that the brokerage isn't allowed to touch. So, you're protected from the brokerage going bankrupt - your money is still yours if that happens.

But it's still in a bank account, so if the bank goes under you're screwed. See my other comment in this thread though...

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Re:I just lost 1,400 BTC by herpderperator on Monday August 31, 2020 @03:02PM (#24334821)
SIPC isn't unlimited, though:

The Securities Investor Protection Corporation (SIPC) was created to protect against the loss of customer assets at brokerage firms. SIPC offers protection of up to $500,000, including a $250,000 limit for cash, if a brokerage firm fails, and covers most types of securities, such as stocks, bonds, and mutual funds. [0]

[0] https://www.schwab.com/public/file/P-3042070/Asset_Protectio...

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