The U.S. Securities and Exchange Commission (SEC) Division of Examinations has outlined its priorities for the fiscal year 2025, with increased attention on crypto assets and related products.
As the market for digital assets such as Bitcoin, Ether, and exchange-traded products linked to cryptocurrencies continues to grow, the SEC intends to closely monitor compliance and regulatory adherence among firms offering these services.
The Division’s examinations will primarily assess how registrants handle the offer, sale, and recommendation of crypto assets that may be classified as securities.
A particular focus will be placed on ensuring that firms meet their obligations when advising retail investors, especially those involved in retirement investments. The SEC aims to ensure that firms maintain proper understanding and risk management practices for the digital assets they deal with.
The oversight will also extend to compliance with the Bank Secrecy Act (BSA) and firms’ handling of crypto asset custody, valuation, and related disclosures. The Division plans to review how firms update their practices in response to evolving market risks and ensure operational resilience in areas such as data integrity and business continuity.
As blockchain technology and distributed ledger systems become increasingly central to crypto markets, the SEC will examine technological risks and their impact on security measures. This includes assessing whether firms are adequately protecting investor assets and ensuring the integrity of their operational frameworks.
The SEC’s focus on crypto asset-related services highlights its ongoing effort to address potential risks and safeguard investor interests in a rapidly evolving financial landscape.
