In Japan, this is already the reality. The FSA required brokerages to implement passkey authentication, and the effect is that it's no longer possible to have a brokerage account without a passkey. (Some brokerages, like Nomura Securities, will offer two separate client portals. The portal with money and trading-related functionality requires a passkey).
The thing that sucks a lot is that brokerages seem to also restrict the allowed software/hardware. Don't know the details, but none of my FIDO2 hardware keys were able to be used. I consistently use these hardware keys through WebAuthn, so I was surprised when my brokerage explicitly told me my hardware key is unsupported and I must use either Windows Hello or the iOS Passwords app.
The FSA's official explanation for mandating passkey implementation is that people kept falling for phishing attacks, and the attacks were getting too sophisticated thanks to "AI" or something.
In Japan, this is already the reality. The FSA required brokerages to implement passkey authentication, and the effect is that it's no longer possible to have a brokerage account without a passkey. (Some brokerages, like Nomura Securities, will offer two separate client portals. The portal with money and trading-related functionality requires a passkey).
The thing that sucks a lot is that brokerages seem to also restrict the allowed software/hardware. Don't know the details, but none of my FIDO2 hardware keys were able to be used. I consistently use these hardware keys through WebAuthn, so I was surprised when my brokerage explicitly told me my hardware key is unsupported and I must use either Windows Hello or the iOS Passwords app.
The FSA's official explanation for mandating passkey implementation is that people kept falling for phishing attacks, and the attacks were getting too sophisticated thanks to "AI" or something.