FINRA Fines TradeStation Securities Over Deficient Crypto Communications

Posted on September 2nd, 2025 at 11:24 AM
FINRA Fines TradeStation Securities Over Deficient Crypto Communications

From the desk of Jim Eccleston at Eccleston Law

FINRA has fined TradeStation Securities Inc. $85,000 for violations related to retail communications about crypto assets and crypto asset-related services. According to InvestmentNews, the penalty follows a three-year FINRA inquiry into how certain broker-dealers communicate with retail customers about digital assets.

In its Acceptance, Waiver and Consent (AWC), TradeStation Securities agreed to FINRA’s findings without admitting or denying them. According to FINRA, the firm’s communications often failed to clearly disclose that crypto assets were not offered by TradeStation Securities itself, but rather through an affiliate that was not a registered broker-dealer. The materials also did not adequately describe the risks of investing in volatile crypto assets.

InvestmentNews reports that the enforcement action is part of FINRA’s broader review of crypto-related communications. A 2022 targeted examination of 500 firm communications found that 70 percent contained potential rule violations. In May 2024, FINRA fined Firstrade Securities the same amount for similar conduct.

Under FINRA rules, broker-dealer communications must be fair, balanced, and not misleading, providing investors with a sound basis for evaluating a product or service. The regulator prohibits false, exaggerated, or incomplete claims, particularly in high-risk areas like crypto assets.

According to InvestmentNews, industry compliance experts have warned that while broker-dealers cannot sell unregistered crypto assets directly, they may offer SEC-approved products such as Bitcoin exchange-traded funds. FINRA’s findings underscore that firms must still ensure all communications comply with strict disclosure and risk presentation standards.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra, tradestation

Return to Archive

TESTIMONIALS

Previous
Next

You are the best attorneys in the country.

CC

LATEST NEWS AND ARTICLES

September 2, 2025
FINRA Fines TradeStation Securities Over Deficient Crypto Communications

FINRA has fined TradeStation Securities Inc. $85,000 for violations related to retail communications about crypto assets and crypto asset-related services.

August 29, 2025
FINRA's 2025 Industry Snapshot Highlights

The Financial Industry Regulatory Authority’s (FINRA) has published its 2025 Industry Snapshot. The Snapshot provides a detailed view of its member firms, registered representatives, and trading activity, revealing both consolidation in the industry and shifts in business models.

August 28, 2025
Former Raymond James Advisor Barred by FINRA Over Misappropriation Probe

The Financial Industry Regulatory Authority (FINRA) has permanently barred former Raymond James financial advisor Meredith Archer Webber after she failed to comply with repeated requests for documents and testimony during an investigation into the possible misappropriation of funds from two elderly clients, according to ThinkAdvisor.