"SIPC protects cash that is deposited with a brokerage firm for one limited purpose….the purpose of purchasing securities,” says Harbeck. “Cash deposited for other reasons would not be protected. SIPC does not protect checking and savings accounts since the money has not been deposited for a protected purpose."
It sounds to me like this would apply to you just as to Robin Hood's ill-fated product. Just saying "we're a broker and cash sweep into a money market fund is what brokers do" doesn't seem like a meaningful argument. Why are you different?
"SIPC protects cash that is deposited with a brokerage firm for one limited purpose….the purpose of purchasing securities,” says Harbeck. “Cash deposited for other reasons would not be protected. SIPC does not protect checking and savings accounts since the money has not been deposited for a protected purpose."
It sounds to me like this would apply to you just as to Robin Hood's ill-fated product. Just saying "we're a broker and cash sweep into a money market fund is what brokers do" doesn't seem like a meaningful argument. Why are you different?