SEC Puts Cryptocurrency Under Microscope for 2025

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SEC Puts Cryptocurrency Under Microscope for 2025

The U.S. SEC has officially added cryptocurrency to its list of items to examine for 2025, according to a report by FOX Business journalist Eleanor Terrett.

In a recent document, the SEC outlines its plans to continue to monitor crypto markets, with a focus on investments involving digital assets and related investment vehicles. Registrants that provide services related to these assets can expect assessments of their conduct in areas such as offering, trading and advising on crypto assets, with a particular focus on retail investors and retirement assets.

The SEC also plans to review registrants’ compliance practices, including custody and wallet reviews, Bank Secrecy Act compliance and risk management procedures.

🚨NEW: A year on, the @SECGov includes #crypto in its list of 2025 exam priorities despite no major crypto participants having registered with the Commission in 2024.

The only crypto assets I can think of that the SEC has interacted with in a regulatory role, not an enforcement… https://t.co/ky6Mf7jvsJ pic.twitter.com/aoVvD9QrqF

— Eleanor Terrett (@EleanorTerrett) October 22, 2024

In addition, exams will assess how registrants address technological risks associated with blockchain and distributed ledger technology, including the security of crypto assets.

Crypto crackdown, But Gensler out?

While this sounds like a looming horror for the market, there is a hint of relief in it. Specifically, there is talk that the current head of the commission, Gary Gensler, may leave his post.

The reason for this is that although the five-year term for the head of the SEC does not expire until January 2026, there is a tradition of leadership changes after the U.S. presidential election, which will take place in November.

In addition, the regulator’s enforcement actions against crypto companies have been criticized by both industry leaders and the U.S. Congress.

Despite this potential change, the SEC’s focus on the crypto industry for 2025 remains clear, signaling a continued push for more oversight and regulation.

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