The securities industry’s self-regulating organization offers annual advice to its members on how to stay out of trouble.
The Financial Industry Regulatory Authority (FINRA) has released its 2024 Annual Regulatory Oversight Report, which contains a section devoted to crypto assets for the first time.
FINRA is the United States self-regulatory organization that oversees securities broker-dealers, for whom membership is mandatory. It is under the regulation of the Securities and Exchange Commission (SEC). It described its oversight report as “one of the tools a member firm can use to help inform the development and operation of its compliance program.” Crypto Asset Developments and Advertised Volume were new among the 26 topics covered.
The crypto section was targeted to firms that currently engage in crypto-related activities or intend to do so. FINRA’s membership application program approves firms to serve as an agency in private (non-public) placements, operate an alternative trading system for crypto asset securities and provide custody services. The report stated:
