The U.S. Financial Industry Regulatory Authority (FINRA) has released its 2024 annual regulatory report, which for the first time includes a section dedicated to crypto-assets.
The crypto-asset-related chapters are aimed at companies that are currently engaged in or intend to engage in crypto-related activities. The report states that FINRA’s Membership Application Program (MAP) follows guidance from the SEC in evaluating the company’s proposed crypto-asset securities business line based on applicable rules, such as the SEC’s Financial Responsibility Rule and Customer Protection Rule. The company will be approved as a private (non-public) placement institution, operate an alternative trading system for crypto-asset securities, and provide custody services.
FINRA also requires its members to notify the organization when they engage in non-security crypto-asset activities and when persons engage in crypto-asset-related outside business activities, private securities trading, and crypto mining operations.
It is reported that FINRA is a self-regulatory organization in the United States responsible for supervising securities broker-dealers. FINRA is regulated by the U.S. SEC. (Cointelegraph)