The Financial Industry Regulatory Authority (FINRA) has announced an extensive review of retail communications by broker-dealers and their affiliates regarding cryptocurrency asset products and services.
The announcement, made on Monday, asks brokers to provide all crypto asset retail communications made to 25 or more investors by them and their affiliates from July 1 through September 30. Retail communications cover any electronic interaction and include written communications, video, social media posts, mobile apps, and websites. The communications covered by the scan would be related to a service involving the holding or trading of crypto assets, FINRA said.
The sweep comes as the Department of Justice (DOJ), the Commodity Futures Trading Commission, and the Securities and Exchange Commission have each indicated a desire within their agencies to oversee various parts of the crypto market. The DOJ has established a National Cryptocurrency Enforcement Team. Although calls for increased regulation have been made for some time by regulators and lawmakers, the urgency to act on them may increase after the collapse of one of the world’s largest cryptocurrency exchanges. , FTX, earlier this month.