According to a report released by the U.S. Financial Industry Regulatory Authority (FINRA), 70% of communications about cryptocurrencies may violate its rules of fairness and balance to the public, such as containing false statements that cryptocurrencies function like cash or cash equivalents.
SEC-regulated FINRA began the investigation in November and is tasked with scrutinizing member firms’ communications with retail investors related to cryptocurrencies and crypto services.
FINRA said it analyzed 500 retail communications to see whether the firms were complying with its rules, which require broker-dealers' communications to the public to be "fair and balanced" and prohibit "exaggerated, promising, unfounded or misleading" statements. The findings revealed that most of the potential violations occurred at a small number of companies. (The Block)