SIPC Sticks with $250K Payout Limit for Failed Brokerages in 2027
Published Date: 1/21/2026
Notice
Summary
The Securities Investor Protection Corporation (SIPC) decided to keep the maximum cash payout for customers at $250,000 starting January 1, 2027, and for the next five years. This means if a brokerage fails, customers can still get up to $250,000 in cash claims. The SEC is asking for public comments on this decision until February 5, 2026.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Inflation formula would have raised limit to $350,000
The statutory inflation formula would multiply $250,000 by the ratio of the Personal Consumption Expenditures price index (calendar year prior to the determination) and, using available data and a forecast for 2025, projects an adjusted maximum cash advance of about $350,000 (an estimated $357,698 rounded down to $350,000).
SIPC cash protection stays $250,000
If your brokerage fails, the maximum cash SIPC can advance to satisfy customer cash claims will remain $250,000 per customer starting January 1, 2027, and for the five years after that. This means the current cash protection level does not increase during that period.
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