As an advisory board member for AltCourt.org in New York, Braeden Anderson formerly worked with the Financial Industry Regulatory Authority (FINRA). Braeden Anderson supports this not-for-profit organization in its mission of improving investor protection and market integrity.FINRA recently requested information from its member firms regarding cryptocurrency-related activity. Topics of interest to FINRA include trading of cryptocurrencies, accepting cryptocurrencies from customers, dispensing with crypto-related advice, managing pooled crypto funds, and participation in token sales. It has also requested information on the practice of mining, in which miners earn rewards for participating in blockchain recording and other unspecified uses of blockchain technology.Participation in this regulatory notice is not mandatory, but comes as part of a comprehensive set of efforts by FINRA regarding the use of digital assets. Some individuals and organizations have committed fraud and other violations of the law using digital currencies and other assets, and FINRA seeks to build comprehensive data on the issue and encourage caution among investors regarding new types of assets.
A Seton Hall University law student, Braeden Anderson has extensive knowledge of securities law and is presently a legal extern with FINRA. One area in which Braeden Anderson has a strong interest is cryptocurrencies and the regulations surrounding them. A recent BanklessTimes article by Braeden Anderson, the president of the Cryptocurrency & Blockchain Regulatory Task Force (CBRTF), brought focus to a new US-based nonprofit that is designed to augment the regulatory structures of the Commodity Futures Trading Commission and the Securities and Exchange Commission (SEC). Operating independently from financial interests and markets, the CBRTF requests the voluntary participation of crypto-market sell-side entities. These include blockchain startups, initial coin offerings (ICOs), and the developers of smart tokens/contracts. The aim is to set in place and enforce a set of standards and rules that have been designed as reflecting worldwide industry best practices. A focus is on regulatory issues that are at present inadequately addressed and reflect the technological complexity of “multifaceted amalgamations of code.” Areas of major CBRTF emphasis addressed include financial management standards, diligence and surveillance protocol, and conflict of interest rules. Compliance is seen as critical in bringing to a close the current “wild west” approach and ensuring consistent, transparent, and enforceable standards.
