FINRA Sheds Light On Path To Digital Asset Security Broker Registration

Interest in engaging in a crypto business seems to be at an all-time high, including doing so in or through regulated and compliant businesses in traditional financial services firms. Brokers-dealers sit atop that list. The path to registration for digital or crypto asset securities brokers can be long and arduous. Just one example - FINRA views digital asset securities business lines as material and, for existing members, requiring approval under FINRA Rule 1017 as a "material change in business operations." To provide a modicum of clarity, a recent FINRA podcast outlined the FINRA Membership Application Program's (MAP) approach to seeking approval for a material business expansion in this area.