FINRA’s 2018 Regulatory and Examination Priorities Letter Includes Initial Coin Offerings and Cryptocurrencies

On January 8, 2018, the Financial Markets Regulatory Authority (“FINRA“) published its 2018 Regulatory and Examination Priorities Letter which identifies topics that FINRA will focus on in the coming year.

Included for the first time are Initial Coin Offerings and Cryptocurrencies. Specifically, the Priorities Letter states: “Digital assets (such as cryptocurrencies) and initial coin offerings (“ICOs“) have received significant media, public and regulatory attention in the past year. FINRA will closely monitor developments in this area, including the role firms and registered representatives may play in effecting transactions in such assets and ICOs. Where such assets are securities or where an ICO involves the offer and sale of securities, FINRA may review the mechanisms—for example, supervisory, compliance and operational infrastructure— firms have put in place to ensure compliance with relevant federal securities laws and regulations and FINRA rules.”

The full letter is available here