SEC Adds Cryptocurrency to 2025 Priorities List
Date: 2024-10-23 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
The U.S. Securities and Exchange Commission (SEC) has once again included cryptocurrencies in its list of priority areas for inspections for 2025, despite possible changes in its leadership and government oversight.
In a notice dated October 21, the SEC’s Division of Inspections announced its priorities for 2025, which included crypto assets and related products. Particular emphasis was placed on spot bitcoin and ether products, which were launched in 2024.
The regulator intends to focus on aspects such as the offer, sale, recommendation, trading, and other activities related to cryptocurrencies. The SEC emphasizes that in the conditions of crypto market volatility, it will continue to inspect entities providing cryptocurrency services, as necessary. The SEC will also focus on the technological risks associated with the use of blockchain technology, including the security of crypto assets.
Acting Director of the SEC's Division of Enforcement Keith Cassidy noted that the agency's priorities include key areas that pose potential risks to investors, indicating that the SEC does not plan to change its approach to digital assets next year.
SEC Chairman Gary Gensler said the Division of Enforcement will help market participants better understand the existing rules, emphasizing the importance of protecting investors and supporting the capital raising process.
The new focus on spot cryptocurrency ETFs is a major departure from the SEC's priorities for 2024. In January, the regulator approved spot bitcoin ETFs for the first time, and in May, similar products for ether.
Leadership Change?
Although Gary Gensler's term officially ends in June 2026, many experts speculate that he could leave his post as early as January 2025, when a new presidential administration takes office.
At a Bitcoin conference in July, Republican nominee Donald Trump vowed to fire Gensler on day one if he is re-elected. There are also reports that Democratic Vice President Kamala Harris is considering potential candidates to replace the SEC chief.
The SEC has been criticized for its “regulation by force” tactics under Gensler, as the commission has filed several lawsuits against cryptocurrency companies accusing them of selling unregistered securities. While the U.S. Supreme Court’s June 2024 decision to overturn the Chevron Doctrine could impact future SEC litigation, the agency continues to pursue cases against companies like Coinbase and Ripple.
