TechFlow news — In a report released on January 23, the Financial Industry Regulatory Authority (FINRA) found that approximately 70% of public marketing materials related to crypto assets from its member firms contained potential violations. This finding emerged from a targeted examination launched by FINRA in November 2022, following the high-profile collapse of cryptocurrency exchange FTX.
FINRA, a congressionally authorized non-governmental organization responsible for protecting U.S. investors, reviewed over 500 retail marketing communications related to crypto assets. These materials spanned from traditional advertisements to more modern formats, including mobile app promotions and digital media content.
The regulator identified misleading or false statements in these communications as a concerning trend. The reviewed materials frequently failed to clearly distinguish between crypto assets offered by the member firms themselves and those provided by third parties. Additionally, many marketing materials inaccurately described crypto assets as secure or equivalent to traditional financial instruments such as cash.
