The U.S. Securities and Exchange Commission (SEC) has officially added cryptocurrencies to its examination priorities for 2025, underscoring its commitment to scrutinizing the rapidly evolving crypto market.
In a recent press release, the regulatory agency announced its intention to closely monitor activities related to cryptocurrencies, particularly focusing on spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded products (ETPs). The SEC stated, “Given the volatility and activity involving the crypto asset markets, the Division will continue to monitor and, when appropriate, conduct examinations of registrants offering crypto asset-related services.”
In addition to monitoring trading activities, the SEC aims to assess how companies manage technological risks associated with blockchain and distributed ledger technology, as well as evaluate security concerns surrounding crypto assets.
Keith Cassidy, the Acting Director of the Division of Examinations, highlighted the significance of these new priorities, noting they target “key areas of increased risk and potential harm for investors.”
SEC Chair Gary Gensler reinforced the importance of providing clarity to market participants about regulatory requirements, emphasizing that such efforts are essential for investor protection and the facilitation of capital formation. “The Division plays a critical role in protecting investors and facilitating capital formation. Working with registrants to understand the rules helps ensure that markets work for investors and issuers alike,” Gensler explained.
A notable change in the SEC’s priorities this year is the inclusion of spot crypto exchange-traded funds (ETFs). The agency began approving these financial products in early 2022, with the first spot Bitcoin ETFs granted approval in January and Ether ETFs following in May. The addition of spot crypto ETFs reflects a shift in focus from the SEC’s priorities in 2024.
As the SEC gears up for 2025, potential changes in leadership may influence its regulatory strategies. While Gensler’s term is set to continue until June 2026, speculation surrounds his position, particularly with political candidates like Republican Donald Trump pledging to remove Gensler “on day one” of their administration if elected.
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