Section IV: Regulatory Considerations

In addition to the potential challenges and related factors noted above, member firms should also be mindful of the potential implications to their regulatory obligations as they consider whether to incorporate the metaverse into their internal systems and processes or use this technology within product offerings. FINRA reminds its member firms that FINRA’s rules—which are intended to be technology neutral—and the securities laws more generally, continue to apply if member firms use the metaverse in the course of their businesses, just as they apply when member firms use any other technology or tool. Using any given technology does not absolve firms of their regulatory obligations. The specific rules applicable to member firms’ use of the metaverse will vary—and could implicate many areas of member firms’ regulatory obligations—but will ultimately depend on how member firms deploy the technology.¹⁰⁶

This report is not intended to provide an exhaustive or cumulative list of all factors or regulatory issues associated with the metaverse and related technologies. Moreover, this report does not create any new legal or regulatory requirements or new interpretations of existing requirements, nor does it relieve firms of any existing obligations under federal securities laws and regulations. Member firms may consider the information in this report when developing new, or modifying existing, practices that are reasonably designed to achieve compliance with relevant regulatory obligations based on the member firm’s size and business model. Member firms should conduct their own risk assessments regarding the potential regulatory implications of virtual spaces that pertain to their unique use cases and business models.

FINRA welcomes the opportunity to engage with member firms regarding the metaverse and its immersive technologies. To the extent member firms find ambiguity in the application of FINRA rules based on their specific use of metaverse technology, they may seek interpretive guidance from FINRA. Member firms may seek interpretive guidance by following FINRA’s process for interpretive requests.¹⁰⁷