# FINRA proposes fraud holds expressly covering customer crypto assets

> The SEC published FINRA's proposal to expressly include crypto assets, such as payment stablecoins held by member firms, within Rule 2165 and proposed Rule 2166 protections.

- URL: https://riadefi.com/regulation/2026-09-03-finra-customer-crypto-assets-fraud-holds/
- Posture: Proposal · not in effect
- Authorities: Financial Industry Regulatory Authority; U.S. Securities and Exchange Commission
- Event date: 2026-09-03
- Version: 1, published 2026-09-15 (first published 2026-09-15)
- Advisor-relevant: no

This entry records a proposal. It does not change the law unless it is adopted.

## What changed

The SEC published FINRA's proposal to expressly include crypto assets, such as payment stablecoins held by member firms, within Rule 2165 and proposed Rule 2166 protections. Proposed Rule 2166 would offer an optional safe harbor for delays of up to ten business days when a firm reasonably suspects fraud targeting an adult customer, subject to safeguards including customer notification within two business days. Rule 2165 amendments would permit three additional conditional 30-business-day extensions beyond the existing 55-day framework. The proposal also modifies trusted-contact procedures. SEC approval and a subsequent FINRA effective-date announcement remain pending.

## Who it affects

- FINRA member firms holding customer crypto assets or payment stablecoins
- Advisers coordinating suspected-fraud responses with clients' broker-dealers

## What is still open

- Whether the SEC will approve or modify the proposal
- The eventual effective date and firms' operational treatment of crypto-asset disbursements
- Interaction with applicable state law and contractual hold rights

## What it means for an advisor

- Map crypto and stablecoin withdrawal escalation procedures to the proposed safeguards for possible implementation after approval
- Coordinate customer-contact, evidence-preservation, and hold-release procedures with carrying brokers
- Do not treat the proposal as present authority to hold client assets or permission to offer crypto custody

## Sources

1. [Notice of Filing of Proposed Rule Change to Amend FINRA Rules 0150, 2165 and 4512 and Adopt FINRA Rule 2166](https://www.sec.gov/files/rules/sro/finra/2026/34-106275.pdf) · U.S. Securities and Exchange Commission · 2026-09-03


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Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.