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Compliance & Regulations

How CRA Compliance Can Become a Competitive Advantage for IoT Leaders

Early CRA compliance isn't just about risk—it's a strategic edge for IoT leaders accelerating market entry, trust, and global security alignment.

Eric Greenwald, General Counsel

Eric Greenwald, General Counsel

May 28, 2025

Regulatory compliance is often treated as a checkbox, but for forward-looking IoT manufacturers, the EU Cyber Resilience Act (CRA) is more than a legal requirement; it’s a strategic opportunity.

As highlighted in SC Media’s recent article, early CRA adopters are poised to lead. They're accelerating time to market, earning stakeholder trust, and redefining what it means to be secure by design.

The Business Value of Early CRA Readiness

The CRA mandates that IoT and software-based products sold in the EU meet rigorous cybersecurity requirements, covering secure development, SBOM generation, vulnerability disclosure, and lifecycle update practices.

Starting in 2027, non-compliant products will be blocked from entering or remaining in the European market. But proactively developing compliant products can deliver business benefits well before that deadline:

  1. Faster Market Entry: Products built with CRA principles from the ground up avoid costly rework and delays during CRA conformity assessments and other regulatory processes.

  2. Increased OEM and Regulator Confidence: Demonstrating CRA alignment signals to regulators and enterprise buyers that your security program is robust, transparent, and future-ready.

  3. First-Mover Advantage: In critical sectors like healthcare and industrial systems, early compliance can establish your brand as a preferred, low-risk supplier—especially in long procurement cycles where security diligence (and assurance of continued access to the EU market) is essential.

Using Secure-by-Design as a Brand Differentiator

CRA isn’t just about risk reduction; it’s about building trust.

Secure-by-design principles—such as continuous SBOM management, vulnerability lifecycle tracking, and coordinated disclosure practices—are powerful trust signals in B2B environments that show your security to be more than just performative.

  • Procurement Influence: Enterprises increasingly require visibility into third-party software components, and CRA-readiness shows you’re prepared to deliver that transparency.

  • Supply Chain Assurance: Tier 1 and Tier 2 suppliers face mounting pressure to ensure upstream and downstream security. A mature CRA program helps you become the low-friction, low-risk partner they want to integrate.

  • Regulatory Momentum: Compliance with CRA prepares you for other converging global frameworks like the U.S. Cyber Trust Mark, CE RED, and emerging APAC regulations. All these certification programs include many of the same core standards — enabling you to turn one investment into multi-market readiness.

Building a Sustainable Compliance Strategy: How Finite State Can Help

Regulatory compliance is a continuous process and that means your strategy must be scalable and automated to be sustainable long term.

Key elements of a successful CRA-aligned DevSecOps program include:

  • Continuous Monitoring: Track new vulnerabilities as they emerge and assess impact in real time.

  • SBOM Lifecycle Management: Maintain, enrich, and distribute SBOMs throughout the product lifecycle, ensuring traceability for regulators and partners.

  • Integrated Remediation Workflows: Use CI/CD-integrated tools to break builds on policy violations and generate actionable fix guidance.

Finite State helps organizations operationalize CRA compliance with a unified platform that:

  • Supports 130+ container, archive, and binary formats

  • Offers automated SBOM generation and validation

  • Monitors for exploitability and policy violations across your product portfolio

  • Supports production of audit-ready documentation aligned with EU RED, CRA, and U.S. Cyber Trust Mark standards

Conclusion: The Future Belongs to the CRA Leaders

The EU Cyber Resilience Act isn't just a regulatory hurdle, it's a catalyst for competitive differentiation in an increasingly security-conscious market. Organizations that invest early in CRA compliance signal to the world that they’re secure-by-design, transparent across the supply chain, and prepared to meet the highest global standards.

Rather than retrofitting compliance under pressure, proactive IoT leaders are integrating CRA-readiness into their DevSecOps practices, accelerating product approvals, and gaining trust with enterprise buyers, regulators, and partners alike.

Get ready to turn compliance into a growth driver with Finite State today. Book a Demo to learn more. 

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Eric Greenwald, General Counsel

Eric Greenwald, General Counsel

Eric Greenwald is General Counsel at Finite State, bringing over 20 years of legal experience across government, tech, and national security. He previously served as Special Assistant to the President for Cybersecurity on the National Security Council and held senior roles at U.S. Cyber Command, the FBI, and the House Intelligence Committee.

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