Reg BI: What It Is, Why It Matters for Crypto Investors

When you get investment advice from a broker, Reg BI, a rule enforced by the U.S. Securities and Exchange Commission that requires brokers to act in their clients' best interests. Also known as Regulation Best Interest, it forces firms to put your needs ahead of their own commissions or profits. Before Reg BI, many brokers could legally push products that paid them the most—even if those products weren’t right for you. Now, they have to explain why they’re recommending something, and they can’t hide conflicts of interest. This matters more than ever in crypto, where shady platforms pretend to be advisors while pushing risky tokens or fake airdrops.

Reg BI doesn’t just apply to stocks. If a crypto exchange, financial advisor, or even a YouTube influencer is giving you personalized investment advice and getting paid for it, they’re supposed to follow Reg BI. That means if someone tells you to buy CKN or QSTaR because "it’s going to 10x," they need to prove it’s actually good for you—not just good for their affiliate link. You’ll see this play out in posts about fake airdrops like Crypto Bank Coin or Liquidus old airdrop, where no real advisor would recommend those because they have zero value. Reg BI is why you should walk away from any "guaranteed return" pitch in crypto.

It also connects to how exchanges operate. Platforms like LATOKEN or Bitwired might offer trading, but if they’re also giving advice without disclosing fees or risks, they’re breaking Reg BI. That’s why posts on crypto exchange reviews dig into transparency: if a platform hides withdrawal delays, delistings, or lacks licensing, it’s not just risky—it might be violating federal rules meant to protect you. Reg BI doesn’t cover every crypto scam, but it’s one of the few legal tools you can use to hold bad actors accountable.

And it’s not just about U.S. rules. As the EU rolls out MiCA and countries like the Philippines freeze $150M in unlicensed crypto assets, global regulators are catching up. Reg BI set the tone: investors deserve clarity, not hype. The posts below show you exactly where this rule applies—and where it’s being ignored. You’ll find real cases: fake exchanges, dead tokens, and airdrops that never happened. Each one is a lesson in what to watch for when someone says "trust me, I’m an expert."