Crypto is no longer the outlier in financial markets. For broker/dealers, digital assets are part of day-to-day operations, and regulators are taking notice. The 2025 FINRA Annual Regulatory Oversight Report signals a significant pivot: Crypto-related activities, influencer-driven marketing and decentralized finance now fall squarely within its supervisory crosshairs. Broker/dealers need to prepare accordingly.
Regulatory shifts demand a more proactive approach from compliance teams. Firms must modernize supervisory systems, invest in scalable technologies, and prepare for a regulatory environment that treats crypto with the same scrutiny as traditional financial products. As someone who’s worked closely with compliance leaders for years, I can say with confidence that those who embrace automation and clarity now will fare far better than those trying to play catch-up later.
The Communications Crackdown Has Begun
Marketing in financial services has always been a careful balancing act. Still, new risks have entered the arena: AI-generated content, influencer-led promotions, and fast-evolving disclosures around products like crypto and registered index-linked annuities. FINRA Rule 2210 requires all communications to be fair and balanced, yet the 2025 report reveals that many firms are falling short.
The concerns aren’t hypothetical. FINRA cited repeated failures to properly supervise influencer content, detect misleading promotional claims, and include essential disclosures—overly enthusiastic messaging around AI capabilities or crypto’s potential leads to real-world compliance failures.
We’ve seen firsthand how digital communications, especially AI-generated or distributed via influencers, can quickly become compliance risks. Automation is becoming a key strategy for firms aiming to stay ahead of regulatory scrutiny. Tools that can pre-review content for risk language, missing disclosures or misleading claims offer much-needed support in this fast-moving environment.
Outside Business Activities in a DeFi World
Employee oversight has long been a cornerstone of FINRA’s rules, but DeFi and digital assets are adding new layers of complexity. Rules 3270 and 3280 require disclosure and supervision of outside business activities and private securities transactions, yet many firms treat these areas lightly.
That approach won’t hold anymore. FINRA is asking firms to conduct due diligence on all OBAs and PSTs, including those in DeFi, and to maintain thorough records and supervisory processes. It’s not enough to rely on employees voluntarily disclosing these activities; firms need structured workflows that standardize disclosure and enforce follow-through.
Firms are increasingly turning to configurable workflows to manage the pre-clearance of activities tied to traditional finance and DeFi. Structured escalation paths, audit trails, and real-time alerts are becoming standard expectations, helping compliance teams surface potential conflicts early and address them before they become violations.
Trade Surveillance Under a Microscope
Market abuse is another growing concern. FINRA Rule 3110 (Supervision) mandates that firms must actively detect and respond to suspicious trading, including insider activity and manipulative behaviors. Yet the 2025 report found lapses in firms’ ability to investigate and escalate red flags promptly.
What makes this more urgent is the way crypto trading blurs traditional boundaries. Employees may use decentralized platforms or wallets that operate outside legacy systems, complicating surveillance. Broker/dealers must bring this activity into the fold with robust trade monitoring.
Effective surveillance of employee and firm trading activity is a growing priority for broker/dealers, particularly as trading environments become more complex. Real-time alerts, customizable risk parameters, and integrated investigation workflows are now critical tools for compliance teams working to identify irregular patterns and respond swiftly while maintaining a defensible audit trail.
Technology Is No Longer Optional
The common thread in FINRA’s updated priorities is a demand for modern supervision. The days of spreadsheets, siloed systems, and manual approvals are over. Regulators are moving faster, and broker/dealers need systems that can keep up.
Firms are under increasing pressure to centralize oversight, minimize human error, and react to real-time risk—whether reviewing marketing content, managing DeFi disclosures, or investigating suspicious trading. Regulators now expect firms to detect issues, explain decisions and demonstrate why no action was taken when risks were missed.
The right automation tools provide operational efficiency and a foundation for sustainable compliance. They allow teams to focus on strategy and judgment instead of playing defense with dated processes. Most importantly, they give regulators confidence that firms take their responsibilities seriously.
Looking Ahead
FINRA’s latest guidance signals a clear shift from suggestion to enforcement. Broker/dealers operating in the digital space must take meaningful steps now to modernize their compliance programs. This includes reassessing existing supervisory procedures, integrating technology solutions that provide visibility and control, and staying engaged with new guidance as it emerges.
There’s no question that compliance in the age of crypto presents new challenges. But with the right tools and a proactive mindset, broker/dealers can meet these challenges head-on—and build trust with regulators and the investors they serve.
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