TradeStation Securities, Inc. has agreed to pay an $85,000 fine and received a formal censure from the Financial Industry Regulatory Authority (FINRA) for distributing misleading retail communications related to crypto assets, according to a Letter of Acceptance, Waiver, and Consent (AWC) signed on July 25, 2025.

FINRA found that from July through September 2022, TradeStation disseminated promotional content regarding crypto-related services without clearly disclosing that these assets were not offered through a FINRA-registered broker-dealer. Instead, they were provided by an affiliate that was not a FINRA member. The firm’s marketing materials, including webpages, emails, and social media posts, also failed to present a fair and balanced view of the risks involved in crypto investments.

TradeStation’s language blurred the lines between regulated and unregulated offerings

According to FINRA, these communications violated FINRA Rule 2210’s content standards, including failing to distinguish between services offered by TradeStation and those offered by its affiliate. One example cited by the regulator was a webpage stating that “TradeStation provides award-winning trading and analysis platforms and self-clearing online brokerage services for stocks, ETFs, equity and index options, commodity and financial futures, futures options, and cryptocurrencies.” The language blurred the lines between regulated and unregulated offerings.

Another cited instance involved a social media video that described TradeStation as a platform that allows users to “buy, sell, and trade many types of stocks, ETFs, and several cryptocurrencies,” without clarifying that the crypto products were handled by a separate entity not subject to the same regulatory protections.

FINRA determined that TradeStation violated Rules 2210(d)(1)(A), 2210(d)(1)(B), and 2210(d)(3), which cover fair dealing, prohibitions against misleading statements, and proper disclosure of member relationships and product offerings. These violations also constituted a breach of FINRA Rule 2010, which requires members to observe high standards of commercial honor.

TradeStation’s affiliate has since ceased offering crypto asset services, and the firm no longer distributes related communications. The firm waived its rights to a formal complaint or hearing and accepted the sanctions without admitting or denying the findings.

The sanction adds to ongoing regulatory scrutiny of crypto-related marketing by financial firms, as FINRA and other regulators continue to examine how retail investors are introduced to digital asset products—particularly through broker-dealers operating alongside unregulated affiliates.

In May, TradeStation Securities added CME Group’s XRP futures contracts to its product lineup, continuing its expansion into regulated cryptocurrency derivatives. The brokerage now offers both micro (2,500 XRP) and large (50,000 XRP) sized contracts to eligible clients through the CME’s regulated futures market.