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by asdfasgasdgasdg
2446 days ago
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That distinction doesn't make sense to me, for one simple reason. For Robinhood to promise a return of 3%, they must have been sweeping the money into some sort of investment vehicle. But the SIPC still said they weren't covered. |
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Also, money market funds, which are generally considered cash-equivalents, don't usually yield north 3% either afaik, and I can imagine putting customers deposits in riskier higher yielding investments could have also have ran foul of banking regulations.
Brex is using neither of these strategies here as far as I can tell, and they're providing a decent amount of transparency into how the funds are going to be handled, so it should be fairly easy for regulators to review. If regulators do take issue with their strategy, I suspect we'll probably hear about it in the news soon enough. In the mean time, it's still an early access product, so it's not like we can use it immediately anyways (I'll definitely be signing up though).