Robinhood Co-Founder and Co-CEO Baiju Bhatt Photo by Steve Jennings/Getty Images for TechCrunch

Just after the unveiling of a checking & savings accounts service stock-trading app Robinhood plans for its users, The Securities Investor Protection Corporation has voiced concerns that deposited funds may not be eligible for insurance even as Robinhood says they will be insured by the SIPC.

“I disagree with the statement that these funds are protected by SIPC,” SIPC president and chief executive Stephen Harbeck said in an interview. “Had they called us, I would have told them what I just told you in that I have serious concerns about this. This has gigantic ramifications for the banking industry.”

Robinhood Co-Founder and Co-CEO Vladimir Tenev Photo by Noam Galai/Getty Images for TechCrunch

“I spoke to my colleagues at the trading and markets division at the SEC, and I’m sure they’ll be consulting with the firm today,” Harbeck said. “I believe that, as stated by the firm, there’s some significant legal problems that they have.”

Robinhood’s website says that deposits up to $250,000 in cash for each account are protected by the SIPC should anything go wrong. But Harbeck opposes, stating that the SIPC wasn’t consulted by the company before it announced the new service. He also pointed to the Robinhood website what states a customer is not required to invest to obtain checking and savings services. SIPC’s insurance is meant for protecting investors, he noted.

Bhatt (Left) speaks onstage during Day 2 of TechCrunch Disrupt SF 2018 Photo by Steve Jennings/Getty Images for TechCrunch

According to Robinhood, the checking & savings account it’ll offer will earn 3% interest paid out daily, feature no fees, provides access to over 75,000 free ATMs, offer 24/7 customer support and a personalized debit card for holders.

Both Robinhood and the SEC have not made any comments as of yet.

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