01.23.24
Most Brokerage Firms’ Crypto Communications Don’t Pass Muster, Regulator Says
by: Kenneth Corbin
More than two-thirds of the messages from brokerage firms regarding crypto assets reviewed by the Financial Industry Regulatory Authority (FINRA) through a targeted exam program include potential violations of the rules governing communications with the public. The missteps included false or misleading statements, product comparisons without proper context and a failure to clearly explain how crypto assets work. “With the growth in this market and increased interest in crypto assets, the potential harm caused by problematic communications has also increased,” said Ira Gluck, senior director of FINRA's Advertising Regulation Department. "In order to have enough information to evaluate a crypto asset investment or service, communications need to clearly describe its risks and features."
Read the full article on Barron's