SEC lists crypto as an examination priority in 2025

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As a seasoned researcher who has closely followed the SEC’s evolution in the digital asset space, I find the commission’s consistent focus on cryptocurrencies heartening yet unsurprising. Having witnessed the rapid growth and transformation of this sector over the years, it is evident that regulation is essential to protect investors while fostering innovation.

For the upcoming year, the U.S. Securities and Exchange Commission (SEC) has once more highlighted cryptocurrencies as a key focus area for their examinations, despite potential shifts in leadership or administration.

On October 21st, the Securities and Exchange Commission’s (SEC) Division of Examinations disclosed their focus areas for the year 2025. Among these priorities are cryptocurrencies, as well as related financial offerings and services.

As a regulatory analyst, I can share that our primary emphasis is directed towards various crypto asset-related activities such as offering, selling, recommending, advising, trading, and other associated actions involving cryptocurrencies like Bitcoin (BTC) and Ether (ETH), specifically exchange-traded products.

Due to the unpredictability and constant movement in the digital currency marketplaces, the Securities and Exchange Commission (SEC) will keep a close eye and perform evaluations on registered entities providing services related to cryptocurrencies when necessary,” they stated.

“The Division will assess registrant practices to address the technological risks associated with the use of blockchain and distributed ledger technology, including risks pertaining to the security of crypto assets.”

As a crypto investor, I’ve learned from Keith Cassidy, the Acting Director of the SEC’s Division of Examinations, that the Securities and Exchange Commission is likely to maintain its stance on digital assets in 2025. He highlighted key risk areas where investors might be potentially affected, indicating that these concerns won’t lead to a shift in their approach towards cryptocurrencies next year.

According to Chair Gary Gensler, this action aims to provide clarity on the regulations to all involved parties, emphasizing the importance of protecting investors while promoting the growth of capital.

The addition of spot crypto ETFs represented a change from the regulator’s 2024 examination priorities. The SEC first approved spot BTC exchange-traded products in January, followed by spot ETH products in May. 

Change in leadership?

It’s been proposed that Gary Gensler, whose tenure at the Securities and Exchange Commission (SEC) ends in June 2026, might step down as early as January 2025 when a new presidential administration comes into power.

At a Bitcoin conference in July, Donald Trump, a Republican presidential candidate, promised to dismiss the current chair of the Securities and Exchange Commission (SEC) on his first day in office if he wins the re-election. Additionally, it has been reported that Democratic Vice President Kamala Harris is also considering possible replacements for the position.

Many have criticized the SEC’s approach to “regulation by enforcement” under Gensler as the commission filed several lawsuits against crypto firms, alleging unregistered securities offerings. Though a June opinion from the US Supreme Court overturning the longstanding Chevron doctrine could affect the SEC in court moving forward, the commission still has pending cases against Coinbase, Ripple, and others.

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2024-10-22 19:05