In an October 21 notice, the SEC’s Division of Examinations released its examination priorities for 2025, including crypto assets and their “associated products and services.” The regulator’s Division of Examinations has specifically highlighted spot Bitcoin and Ether exchange-traded products as priorities following their launch in 2024.
The SEC outlined its plans to closely monitor crypto markets in its examination agenda, focusing on investments in digital assets and related vehicles. Registrants offering services related to these assets should anticipate evaluations of their practices in areas like offering, trading, and advising on crypto, particularly concerning retail investors and retirement assets.
The SEC will also review registrants’ compliance protocols, including custody and wallet assessments, adherence to the Bank Secrecy Act, and risk management procedures. Furthermore, examinations will evaluate how registrants manage technological risks tied to blockchain and distributed ledger technology, especially regarding the security of crypto assets.
While this development may seem daunting for the market, there is a silver lining. Speculation is circulating that the current SEC chair, Gary Gensler, may step down from his position.
Although Gensler’s five-year term is set to end in January 2026, it’s customary for leadership changes to occur after the U.S. presidential election, which will be held in November.
