Is Your RIA’s Crypto Strategy Meeting The SEC Fiduciary Standard?

Oct. 23, 2026

Decoding the SEC Cybersecurity Document Request: What Examiners Hunt For First

Oct. 07, 2026

RIA Valuations in 2026: How to Maximize Your Sale Price in a Cooling Market

Sep. 17, 2026

SEC Exam Priorities for Q4 2026: Reg S-P, Alt Investments & AI

Sep. 03, 2026

Should financial advisors resign while under investigation? (What Actually Happens)

Aug. 31, 2026

FINRA Panel Expunges Unauthorized-Trading Claim For Illinois Financial Advisor

Michelle Atlas-Quinn, J.D.

As Vice President of RIA Operations, Michelle Atlas-Quinn, J.D., is an accomplished legal professional who is dedicated to helping our clients navigate the complex regulatory environment with confidence. Michelle brings a rare combination of legal acumen and extensive industry experience, having previously worked as a licensed attorney and a FINRA-licensed securities principal. This dual perspective provides a deep, practical understanding of compliance, regulatory matters, and risk management within the wealth management sector. Her focus is on translating complex legal requirements into clear operational strategies, providing our RIA clients with top-tier support and guidance. Michelle earned her Juris Doctorate from the University of Denver Sturm College of Law and holds a Bachelor of Arts in Philosophy from the University of Colorado.

As digital assets become a permanent fixture in client portfolios, many registered investment advisers (RIAs) are facing a critical regulatory gap. A common misconception in the industry is that a client’s signed risk disclosure acts as a "get-out-of-jail-free" card for cryptocurrency investments.

Quick Summary: Under the Investment Advisers Act, an RIA's duty of care and duty of loyalty apply fully to cryptocurrency and digital currency managed in firm or master accounts. Signed risk disclosures do not absolve firms of liability; compliance requires full Form ADV integration, strict custody protocols, and a documented supervisory framework.

Under the SEC fiduciary standard, your duty of care and duty of loyalty do not vanish simply because an asset is decentralized. When digital assets are under your firm’s management or master account, you maintain full regulatory oversight, supervisory obligations, and fiduciary liability.

Why Client Consent Isn't Enough

The SEC's 2026 Exam Priorities have tightened the lens on "complex products." Regulators no longer view crypto as a niche experiment. Instead, they view it with the same scrutiny as private credit or leveraged ETFs.

If you are an investment adviser representative (IAR) recommending digital assets, you must answer one question: How are you supervising them?

To bridge the gap between innovation and obligation, your firm needs a documented, defensible strategy.

A Roadmap To Crypto-Ready Compliance

AdvisorLaw has expanded our team to include compliance analysts certified in Blockchain and Digital Assets. We help firms move past the "wild west" phase of crypto and into a structured, defensible program.

Our framework focuses on four critical pillars:

1. Custody & Supervision

The SEC is increasingly focused on its custody rule. We help you define the hard boundary between personal digital wallets (held-away assets) and firm-managed assets. This is the first line of defense in mitigating your regulatory footprint.

2. Suitability & Complexity Parameters

Standard disclosures aren't enough. We help you draft specific investor profile guidelines and complexity disclosures that align with current SEC expectations for high-net-worth and accredited investors.

3. Manual & ADV Integration

A digital asset strategy shouldn't live in a silo. Your compliance manual and Form ADV must be living documents. We provide total integration of digital asset policies, including written procedures for ongoing monitoring, valuation testing, and cybersecurity controls.

4. Documented Education

The SEC expects CCOs and IARs to be competent in the products they recommend. We provide a roadmap for the ongoing training and education that proves your firm is meeting its duty of competence.

Innovation Without Risk Is Growth

The SEC wants proof, not promises. It expects RIAs to treat digital currency with the same institutional rigor as any other asset class.

Failure to provide a structured supervisory framework for crypto can lead to exam deficiencies, enforcement actions, and the revocation of professional marks.

Blog Sidebar Contact (#93)

First Name

Last Name

Email Address

Phone

CRD/IAPD #

Company Name

How Can We Help You?

How Did You Find Us?

Please specify which AI:

Questions or Comments

By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. You can reply STOP to opt-out of further messaging. Read our Privacy Policy for more information.

Protect Your Growth With AdvisorLaw

Don't let the “wild west” of digital assets jeopardize your firm’s registration. Whether you are already managing digital assets, or you’re looking to launch a program, AdvisorLaw provides the expertise to build a compliant digital asset program—from the ground up.

Engage with our experts today!

SEC & State | Compliance Blog Contact