The U.S. Securities and Exchange Commission (SEC) has included cryptocurrencies in its list of examination priorities for 2025.
According to a press release on Oct. 21, the regulatory body plans on keeping an eye on activities involving cryptocurrencies and its related products particularly spot Bitcoin (BTC) and Ether (ETH) exchange-traded products (ETPs).
The SEC stated, “Given the volatility and activity involving the crypto asset markets, the Division will continue to monitor and, when appropriate, conduct examinations of registrants offering crypto asset-related services.”
In addition, the SEC wants to evaluate how companies handle the technology risks associated with blockchain and distributed ledger technology, and also “risks pertaining to the security of crypto assets.”
Keith Cassidy, the Acting Director of the Division of Examinations “emphasized the importance of these priorities, saying they highlight “key areas of increased risk and potential harm for investors.”
Furthermore, SEC Chair Gary Gensler reiterated the need to help market participants understand the rules, mentioning that it’s crucial for investor protection and supporting capital formation.
In the press release, Genslare stated that “the Division plays a critical role in protecting investors and facilitating capital formation. Working with registrants to understand the rules helps ensure that markets work for investors and issuers alike.”
There is One notable change from the previous year’s examination priorities which is the inclusion of spot crypto ETFs.
The SEC started approving these financial products in early 2022, with the first spot Bitcoin ETFs approved in January and Ether ETFs in May. The SEC mentioned that adding spot crypto ETFs marks a shift from its priorities in 2024.
However, As the SEC prepares for 2025, changes in leadership could affect its regulatory approach. Although Gensler’s term runs until June 2026, there is speculation that he might step down if a new president comes into office. Political figures, including Republican candidate Donald Trump, have promised to fire Gensler “on day one” if elected.
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