FINRA Updates Website With New Section On Crypto Assets

According to PANews, the Financial Industry Regulatory Authority (FINRA) has updated its official website to include a new section dedicated to crypto assets. While the term 'crypto asset securities' is not explicitly mentioned, it is referenced in a link to a 2023 investor alert from the Securities and Exchange Commission (SEC). The update highlights that certain crypto assets or transactions may meet the definition of securities. The newly added page provides detailed information on various types of crypto assets and their trading methods. It also outlines the associated risks and offers links to resources from regulatory bodies such as the SEC, the Commodity Futures Trading Commission (CFTC), and the Federal Trade Commission (FTC). FINRA emphasizes that determining whether a crypto asset or transaction qualifies as a security should be based on the definitions provided by federal securities laws. The Howey Test and Reves Test are among the standards that may be used to make this determination.