In 2025, the U.S. Securities and Exchange Commission (SEC) will increase its investigation into cryptocurrency assets and the companies that provide, trade, and provide advice on them. The agency will concentrate on handling these assets as securities, making sure that rules are followed, and evaluating the technological risks associated with blockchain.
The Division will continue to keep an eye on and, where necessary, examine registrants providing services linked to crypto assets because of the market’s volatility and activity.
Businesses that offer and sell cryptocurrency assets are being closely watched by the SEC’s Division of Examinations, which is paying particular attention to how these assets are managed as securities, advised, and traded. “The Division continues to observe the proliferation of investments involving cryptocurrency assets and their associated products and services,” the Division stated. The SEC went on to explain:
The selling, trading, and advising of cryptocurrency assets, including well-known products like bitcoin and ether exchange-traded offerings, will be the focus of the examinations. The Division will evaluate whether companies follow their code of conduct, especially when interacting with retail investors, including those who are getting close to retirement. Additionally, businesses must regularly update their compliance frameworks, particularly those pertaining to custody and management procedures for cryptocurrency wallets. This entails keeping effective business continuity strategies and making sure their operations are resistant to interruptions.
Ensuring that SEC-regulated businesses, including investment advisors, broker-dealers, and investment corporations, adhere to federal securities laws is the responsibility of the SEC’s Division of Examinations. The Division finds possible threats to investors and market integrity through its risk-based evaluation approach.
Additionally, the SEC is highlighting the technological hazards that are exclusive to the cryptocurrency industry. The Division acknowledged the significance of secure technology by saying:
In order to address the technological concerns related to the use of distributed ledger technology and blockchain, especially those involving the security of crypto assets, the Division will evaluate registrant procedures.
The SEC’s dedication to safeguarding investors by guaranteeing the security of the platforms and technology supporting cryptocurrency transactions is demonstrated by its analysis of blockchain threats. The SEC’s larger initiative to oversee new financial technology and protect investors in a turbulent market includes its regulatory attention on cryptocurrency assets. The agency wants to improve investor safety and market integrity by giving priority to crypto-related services.
