SEC Adds Cryptocurrency to 2025 Examination Priorities Amid Regulatory Scrutiny  

• The SEC will closely scrutinize registrants involved in offering, trading, or advising on crypto assets in 2025.  
• Compliance processes, such as wallet security and risk management, will be key focuses during assessments.  
• Despite potential leadership changes, the SEC’s intent to tighten crypto market regulation remains evident.

The U.S. Securities and Exchange Commission (SEC) has officially added cryptocurrency to its list of examination priorities for 2025, according to a report by FOX Business journalist Eleanor Terrett. The regulatory body released a document outlining its plans to closely monitor the crypto market, especially investments in digital assets and related investment vehicles.

Focus on Registrants in the Crypto Space

In its 2025 agenda, the SEC emphasizes that registrants involved in cryptocurrency services, such as offering, trading, or advising on digital assets, will undergo increased scrutiny. Particularly, the SEC aims to focus on how these entities interact with retail investors and manage retirement assets. This move signals the agency’s intent to protect investors from potential risks in the volatile crypto markets.

Besides monitoring investment activities, the SEC will examine how registrants manage their compliance processes. This will include reviews of custodial practices and wallets, with particular attention to how companies comply with the Bank Secrecy Act. Moreover, risk management procedures are expected to be a focal point during these assessments. The SEC’s examination is geared towards ensuring that entities follow stringent security measures when handling digital assets.

Technology and Security Concerns

Notably, the SEC also aims to review how registrants mitigate technology-specific risks, such as blockchain and Distributed Ledger Technology. The emphasis on technology indicates the agency’s understanding of specific risks inherent in protecting cryptocurrencies, in this case, the safety of the crypto assets.

However, some rumors have arisen as to leadership change at the SEC. Currently, Gensler serves as the head of the SEC till January 2026, but there are rumors he might resign from his position after the US presidential election in November. Such leadership changes occur, for instance, after elections, and may be welcomed by some parts of the crypto industry. Gensler has been an outspoken opponent of the cryptocurrency space and has brought enforcement actions against the industry that have been met with backlash from both industry insiders and members of Congress.

Sustaining Regulation of the Crypto Industry

However, it seems that regardless of the change of leadership at the SEC, the organization’s aim to regulate cryptocurrency continues without any sign of letting up. Therefore, these crypto companies are likely to face further scrutiny in 2025 as the regulatory authority prepares itself to implement stricter rules and policies for preventing unfair practices against an unprotected class of investors, namely the retail users.