The CEO of the Financial Industry Regulatory Authority (FINRA) stated the self-regulatory physique will have a look at potential modifications to crypto laws this 12 months as crypto adoption grows, Barron’s reported, citing a virtual conversation with Securities Industry and Financial Markets Association (SIFMA) CEO Kenneth Bentsen Jr. on Wednesday.
CEO Robert Cook stated FINRA isn’t taking a look at making wholesale modifications to present guidelines, however as a substitute is planning to subject “an early-stage, concept release type of notice,” particularly within the context of promoting and disclosure.
“We’re not looking to regulate or fundamentally change the regulatory structure here,” Cook stated through the webcast, in accordance to Barron’s. “That’s above our pay grade – that’s the SEC, other federal regulators, Congress, figuring out what is the appropriate rules of the road here.”
But Cook expressed concern that the vary of regulators overseeing the varied sorts of crypto property might create confusion amongst traders.
“Our member firms today are involved in the sale of some digital assets – some securities, some not securities,” Cook stated. “And when customers interface with one of our members and then buy a cryptocurrency or buy a digital asset, there are disclosure rules that apply today.”
Cook added that “we want to take this opportunity to talk about those [rules] and also to see if there are additional enhanced requirements that ought to apply, so that when people buy a product that’s not regulated…they may not know that they’re kind of flipping out of the broker-dealer regime into a different regime because they’re dealing with the same broker-dealer.”
Cook stated that FINRA plans to publish its examination priorities for this 12 months inside the subsequent month.
In October, FINRA suggested its members dealing with crypto property to guarantee that they had applicable know-your-customer controls and processes to stay in compliance.