About forty applicants for the broker-dealer license for cripto companies are awaiting approval from the FINRA in the United States. However, the Agency delayed the granting of these licenses, most likely because of the lack of guidance from the SEC.
More than a year delay in broker-dealer licensing for cripto companies
FINRA manages licenses for broker-dealers – companies that buy and sell securities (securities). If a company wants to become a qualified custodian or launch an alternative trading system (ATS), it must first obtain a broker-dealer license.
In some cases, the waiting time for this approval was more than one year. In some cases, FINRA did not even respond to the requests.
Some representatives argue that there is an “unofficial moratorium” on these approvals, while others believe the SEC has asked FINRA not to grant these licenses. Another category of applicants claims that delays are normal, because encrypted assets are a relatively new asset class.
The SEC does not have a clear position on cripto-securities
In recent years, the SEC has been actively involved in the crypto industry, repeatedly asking for community views on various topics, from custody to market manipulation. However, clear guidelines on token and cryptomonas have not yet been issued.
One of the lawyers involved in the licensing process FINRA expressed frustration about the trial:
“On the one hand, the SEC complains that there is market manipulation and bad actors, on the other hand, do not allow good actors to enter the market legally to create order. We are at a stage where we provided all the information we requested. We did not ask for anything extra. However, they tell us that they can not approve the licenses because they do not feel comfortable with this class of goods. “
Only a few licenses granted in the last year
Despite the situation, some companies managed to get approval from FINRA last year. These include the ATS, OpenFinance, tZERO, SharesPost, and Templum Markets platforms.
“Requests for participation from companies proposing to engage in business with cryptomonads pose new and complex issues and we are in the process of processing these requests,
was the official position of Media Relations Director FINRA Ray Pellecchia.
Due to these delays, many companies are considering registering in other jurisdictions to avoid delays.
Investors in US cryptos are also affected – in recent months, a large number of cryptos exchanges have opted to remove the tokens and cryptomonas that could be considered securities. In many cases, trading restrictions only affect customers in the United States.
The delisting decision is largely due to the fear that platforms might be sanctioned because they are trading unlicensed securities.