FINRA's 2026 Regulatory Report Flags Agentic AI Risks and Broker-Dealer Crypto Obligations

The Financial Industry Regulatory Authority (FINRA) published its 2026 Annual Regulatory Oversight Report on December 9, 2025. The report is not a rulemaking and does not carry binding regulatory force. FINRA issues this report annually under its authority as a self-regulatory organization (SRO) under Section 15A of the Securities Exchange Act of 1934 to provide member firms with observations on examination findings, priorities, and risk areas for the coming year.

The 2026 Report dedicates separate sections to artificial intelligence and digital assets. In the AI section, FINRA identifies "agentic AI" — AI systems that autonomously execute multi-step tasks — as an emerging risk area, noting that member firms deploying such systems must maintain supervisory controls compliant with FINRA Rule 3110 (Supervision) and FINRA Rule 4370 (Business Continuity Plans). The digital assets section identifies crypto asset securities and non-fungible tokens (NFTs) as continuing examination priorities, with FINRA citing FINRA Rule 2010 (Standards of Commercial Honor) and applicable SEC guidance on unregistered securities offerings.

Broker-dealers and registered investment advisers operating in digital asset markets should treat the 2026 Report as a preview of FINRA examination focus areas. Firms using AI-driven order execution, customer onboarding, or surveillance systems face heightened scrutiny of their supervisory procedures under Rule 3110. Custodians and broker-dealers facilitating crypto transactions involving securities — including tokens that may qualify as investment contracts under SEC v. W.J. Howey Co., 328 U.S. 293 (1946) — must ensure compliance with applicable registration, disclosure, and suitability requirements.

The 2026 Report does not amend or supersede any FINRA rule. It reflects examination staff observations and does not constitute formal guidance or legal interpretation. Member firms should review the specific sections on agentic AI supervision and digital assets, and consult with compliance counsel when assessing whether existing written supervisory procedures (WSPs) adequately address AI deployment and crypto asset activity. FINRA's examination priorities for 2026 may shift as further SEC rulemaking on digital assets and AI proceeds.

Source: Financial Industry Regulatory Authority, 2026 Annual Regulatory Oversight Report, December 9, 2025. Available at: https://www.finra.org/rules-guidance/guidance/reports/2026-finra-annual-regulatory-oversight-report. Confirmed March 19, 2026.

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