FINRA refutes rumors about new Bitcoin requirements for brokers, issuing a statement clarifying that the new outside activities initiative does not introduce additional obligations but instead simplifies existing procedures.
The Door Remains Open for Brokers to Buy Bitcoin, Says FINRA
FINRA clarified the proposed amendment to the rules governing outside activities of associated persons at broker-dealers. They emphasized that recent media reports misrepresented the nature of the proposal and misled the public about alleged new obligations.
More specifically, FINRA stated:
- No new reporting or pre-approval requirements are being introduced; on the contrary, the proposal aims to simplify longstanding procedures that have been in place for decades.
- The amendment does not require brokers to seek approval for personal actions such as buying Bitcoin, purchasing property, obtaining insurance, or withdrawing money from a bank. These actions are explicitly excluded from the scope of regulation under the “exceptions” clause in the draft.
- FINRA also clarified that the proposed changes do not apply to independent investment activity outside the broker-dealer’s affiliated structure. Moreover, if such activity occurs within an affiliated institution (such as an insurance company or a bank), no additional approvals are required.
This is a clearly positive signal for any investor interested not only in acquiring Bitcoin, but also in the broader crypto asset market.
Conclusion
FINRA has issued a fairly unambiguous statement: the proposal does not aim at overregulation, and Bitcoin purchases will in no way be restricted for broker-dealer personnel. This is a clearly positive signal for any investor interested not only in acquiring Bitcoin, but also in the broader crypto asset market. Seems like a continuous pro-Bitcoin movement – good for all the crypto industry and Web3 space.
