SEC to Prioritize Cryptocurrencies in 2025; Potential Leadership Change
Enhanced Security Measures for Crypto Assets
The U.S. Securities and Exchange Commission (SEC) has unveiled its plans for the upcoming year, with a particular emphasis on monitoring cryptocurrencies in 2025. In a recently released document, the SEC outlines its intensified efforts to oversee crypto markets. The focus will primarily be on investments involving digital assets and the investment vehicles associated with them.
Registrants who engage in offering, trading, and advising on cryptocurrency assets will be subject to thorough scrutiny, with a special emphasis on retail investors and assets designated for retirement. The SEC will also increase its examination of these registrants’ compliance practices, including custody and portfolio management, as well as their adherence to the Bank Secrecy Act and risk management strategies.
However, the SEC’s attention won’t be solely on financial and legal aspects. It will also investigate the technological risks associated with blockchain technology and distributed ledger systems, with a focus on ensuring the security of crypto assets.
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?NEW: Despite no significant crypto participants registering with the Commission in 2024, the @SECGov has included #crypto in its list of 2025 examination priorities.
The SEC’s interaction with crypto assets has been primarily regulatory rather than enforcement-related…
https://t.co/ky6Mf7jvsJ
pic.twitter.com/aoVvD9QrqF
—Eleanor Terrett (@EleanorTerrett)
October 22, 2024
Amidst these stricter regulations, there are rumors of a possible change in SEC leadership. Gary Gensler, the current chairman of the commission, may step down after the U.S. presidential election in November, even though his official term doesn’t expire until January 2026. This tradition of leadership changes after elections could indicate a new direction in regulatory policies.
The SEC’s firm stance on cryptocurrency companies has already faced criticism from industry leaders and members of Congress. However, the commission’s 2025 strategy demonstrates its ongoing commitment to overseeing and regulating the industry.
Disclaimer:
The views and opinions expressed by the author or anyone mentioned in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries the risk of financial loss.
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