FINRA (Financial Industry Regulatory Authority) has launched a new section of its website to cover its work on crypto or digital assets.
FINRA is the entity that oversees all of the broker-dealers in the US. As there are over 624,000 brokers across the country, the responsibility is significant, and the oversight is immense.
FINRA has published a key topics page on crypto assets that includes a blog on the Crypto Hub, current developments, and a variety of content on FINRA’s activities in the digital asset sector. FINRA says that interested parties will be able to find notices, guidance, news releases, and investor education articles on crypto as well as blockchain in general.
FINRA notes that a member firm that intends to engage in the crypto industry must first seek approval for new FINRA membership through the submission of a New Membership Application pursuant to FINRA Rule 1013. This includes firms engaged in the sale of “crypto-asset securities”, and the operation of Alternative Trading Systems (ATSs) for crypto-asset securities.
The rules regarding crypto have evolved slowly in the US, and many questions remain regarding digital assets in general, as well as digital asset securities. While Congress has worked to craft legislation to provide bespoke rules they have been unable to pass any legislation into law. Currently, many digital assets are deemed to be securities or treated as digital currency.