The financial advisory profession is at a crossroads. Clients are asking more questions than ever about Bitcoin, blockchain, tokenization, and digital assets. Yet, the institutions traditionally responsible for setting the bar on advisor education—self-regulatory organizations (SROs), such as FINRA, have been painfully slow to adapt.
On a recent episode of Capital Ideas, Don Friedman, CEO of the Digital Assets Council of Financial Professionals (DACFP), laid out the consequences of this shortfall. DACFP’s research reveals that 80% of clients now ask their advisors about crypto – and 60% would leave for another advisor if those questions can’t be answered. Not recommended, not endorsed – just answered. The demand is clear: investors want informed guidance, and advisors who fail to provide it risk irrelevance.
Why the SROs Have Fallen Behind
Despite including entire modules on everything from annuities to tenants-in-common, FINRA’s Series exams barely touch digital assets. When they do, it’s usually framed in the most negative light – as a speculative danger to avoid rather than a portfolio diversifier or asset class to understand. This isn’t just inadequate; it’s misleading, leaving both advisors and investors at a disadvantage.
The absence of comprehensive digital asset education from regulators has created a vacuum. Programs like DACFP’s Certified in Blockchain and Digital Assets (CBDA) designation are stepping into the role SROs have failed to play: equipping financial professionals with the tools to navigate this fast-moving space responsibly.
Private Training as a Differentiator
Unlike mandatory Series exams, private designations are voluntary. That makes them nimble, competitive, and deeply practical. DACFP’s CBDA program, for instance, is split between technology fundamentals (Bitcoin, blockchain, NFTs, DeFi) and practice management (regulations, portfolio construction, client conversations).
This isn’t theory for theory’s sake. It’s preparation for real-world scenarios – like helping clients manage crypto donations to donor-advised funds, identifying hidden Bitcoin in divorce proceedings, or leveraging unique tax opportunities such as crypto’s exemption from wash-sale rules. These are conversations advisors will increasingly face, whether they like the asset class or not.
As Friedman put it, “Advisors don’t want to be sold to – they want to be educated.” That education has become not only a fiduciary duty but also a marketing differentiator. In a sea of advisors who all tout fee-based planning and dollar-cost averaging, the ability to speak intelligently about digital assets sets an advisor apart.
The Larger Implications
This trend highlights a structural shift: the decentralization of financial education itself. Where SROs once monopolized advisor training, they now lag so far behind the curve that private providers are setting the agenda.
The implications are twofold:
- Investors benefit when advisors are educated by specialists who update their curricula in real time to reflect legislation, market shifts, and new risks.
- Advisors gain an edge when they can offer insights that many competitors – and regulators – still lack.
If anything, the lag from regulators only underscores the importance of private designations.
In a sector where innovation moves at “second-by-second” speed, as Friedman observed, the rigidity of SRO curricula is no match for flexible, market-driven training programs.
For advisors, the message is simple: education is no longer optional. Digital assets are not a passing fad; they’re a permanent fixture of global markets, corporate treasuries, and client portfolios. Whether or not an advisor personally embraces crypto, they must at least understand it or risk losing clients to those who do.
For the industry, the rise of private training programs like DACFP’s CBDA designation signals a shift in where authority resides. The baton of thought leadership has moved away from regulators and toward innovators who recognize the urgency of preparing advisors for a digital-first financial future.
As Friedman reminded, “Education is paramount.” In the digital asset era, it may also be the ultimate differentiator.
Nick Morgan is President and Founder of ICAN, the Investor Choice Advocates Network, a nonprofit public interest litigation organization dedicated to serving as a legal advocate and voice for everyday investors and entrepreneurs. He was previously a partner in the Investigations and White Collar Defense Group at Paul Hastings law firm. Morgan previously served as Senior Trial Counsel in the SEC’s Division of Enforcement. Capital Ideas is a series created by Morgan and Dara Albright.