Following their launch in 2024, the regulator’s Division of Examinations specifically listed spot Bitcoin and Ether exchange-traded funds as one of its goals.
Even if its government authority and leadership may change, the US Securities and Exchange Commission (SEC) has once again listed cryptocurrencies as one of its top examination objectives for the upcoming year.
The SEC’s Division of Examinations published its 2025 priorities, which include cryptocurrency assets and their “associated products and services,” in a notification dated October 21.
The regulator stated that it intended to concentrate on the “offer, sale, recommendation, advice, trading, and other activities involving crypto assets,” specifically mentioning spot exchange-traded products with Bitcoin BTC down – $67,305 and Ether ETH down – $2,621.25.
The SEC stated: “The Division will continue to monitor and, when appropriate, conduct examinations of registrants offering crypto asset-related services, given the volatility and activity involving the crypto asset markets.”
“In order to address the technological risks associated with the use of blockchain and distributed ledger technology, including risks related to the security of crypto assets, the Division will evaluate registrant practices.”
The list of priorities identified “key areas of potentially increased risks and related harm for investors,” according to Keith Cassidy, the SEC’s Acting Director of the Division of Examinations. This suggests that the commission will not change its strategy regarding digital assets in 2025.
Citing the necessity of protecting investors and promoting capital formation, chair Gary Gensler stated that the division would assist players in “understanding the rules.”
Spot crypto ETFs were added, which was a departure from the regulator’s 2024 examination goals. Spot BTC and spot ETH exchange-traded products were originally authorized by the SEC in January and May, respectively.
Shift in Command?
Many experts have speculated that Gensler may depart the SEC in January 2025 when a new presidential administration assumes power, even though his tenure is set to expire in June 2026.
Republican nominee Donald Trump promised to fire the SEC head “on day one” if reelected at a July Bitcoin conference, and there have been rumors that Democratic Vice President Kamala Harris was also considering possible successors.
Since the SEC brought multiple lawsuits against cryptocurrency companies, claiming unregistered securities offerings, many have criticized the agency’s “regulation by enforcement” strategy under Gensler. Even though the US Supreme Court’s June ruling invalidating the long-standing Chevron theory may have legal ramifications for the SEC going forward, the agency still has lawsuits against Coinbase, Ripple, and other companies ongoing.
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