FINRA’s intrusive crypto sweeps are misguided

The Financial Industry Regulatory Authority (FINRA) is continuing its bizarre transformation into a crypto asset regulator with the recent publication of its Crypto Assets Communications Sweep (Sweep) results. 

FINRA lacks regulatory authority over non-securities crypto assets. Despite this fact, FINRA continues to display an unwavering, albeit misguided interest in the non-securities crypto asset activities of its members, affiliates, vendors and personnel. 

FINRA initiated the Sweep more than 14 months ago: It consumed significant time, resources and attention for those subjected to the Sweep. But even with the significant allocation of valuable member resources, the Sweep findings are lackluster at best, and at worst highlight FINRA’s continued struggle to make sense of a complex industry outside of its regulatory gambit.