TradeStation Fined for Misleading Crypto Ads
Date: 2025-07-29 Author: Gabriel Deangelo Categories: BUSINESS
TradeStation, a company providing cryptocurrency trading services, has been fined $85,000 by the US Financial Industry Regulatory Authority (FINRA). The reason for this was the publication of misleading advertising materials that were distributed for almost two years.
According to the FINRA report, from December 2020 to October 2022, TradeStation promoted trading in digital assets, including Bitcoin, without adequately disclosing the risks. The materials did not mention possible financial losses and created the impression that investing in cryptocurrency was simple and safe. Such a message could influence both novice and experienced investors, which caused concern on the part of the regulator.
FINRA paid special attention to TradeStation’s actions in the third quarter of 2022, when the company published advertisements for crypto services without indicating that these offers came from a related brokerage firm that did not have the appropriate FINRA license. The lack of such information could have misled customers about the legal status of the services.
The fine was imposed as part of a settlement agreement under which TradeStation agreed to review its advertising standards and bring them into compliance with regulatory requirements. This is not the first time that the company has faced claims from US regulators: it previously settled a dispute with the SEC, paying a fine of about $3 million for offering unregistered securities.
FINRA emphasized the importance of transparency in communications with clients, especially in the context of growing interest in cryptocurrencies. The agency believes that such violations undermine confidence in the market and can lead to unreasonable financial losses for investors.
TradeStation, in turn, expressed its readiness to cooperate with the regulator and make the necessary adjustments to advertising campaigns. The company's representatives noted that they have already begun working on improving disclosure standards.
The TradeStation case has become another reminder of how important regulation is in the digital asset sector. As cryptocurrencies grow in popularity, government agencies continue to tighten control over the activities of companies operating in this industry.
