State Regulators Call for Expanded Oversight in Proposed Rule Changes

May 16, 2025 - 18:33

A coalition of state regulators is advocating for the inclusion of additional activities in proposed rule changes concerning outside business oversight. The North American Securities Administrators Association (NASAA) has urged the Financial Industry Regulatory Authority (FINRA) to consider the impact of cryptocurrency, collectibles, and lending activities when evaluating the operations of unaffiliated investment advisers.

The regulators emphasize that these emerging sectors are gaining traction and warrant closer scrutiny to ensure investor protection. By expanding the scope of oversight, they aim to enhance transparency and accountability within the financial advisory community. The proposed changes also highlight the need for stricter recordkeeping practices, which are essential for maintaining regulatory compliance and safeguarding investors’ interests.

This push for expanded regulation reflects a growing recognition of the complexities associated with new financial products and services. As the landscape of investment opportunities continues to evolve, state regulators are determined to adapt regulatory frameworks to address potential risks and challenges effectively.