SEC announces more scrutiny for bitcoin and cryptocurrencies in 2025
The SEC will conduct examinations to see if cryptocurrency companies “meet the standards.”
The agency says that they will continue to monitor the activities of companies in the sector.
The United States Securities and Exchange Commission (SEC) revealed its intention to intensify supervision over cryptocurrencies and their associated entities in its fiscal year 2025 plan. This statement follows a document recently published by the SEC, which details who will continue to observe the proliferation of investments related to cryptoassets and their associated products and services.
The agency express that “given the volatility and activity involving the cryptoasset markets, the Division will continue to monitor and, where appropriate, conduct examinations of registrants offering cryptoasset-related services.”
Examinations of registrants will focus on the offering, selling, recommending, advising, trading and other activities related to cryptoassets that are offered and sold as securities or related productssuch as spot bitcoin or ether exchange-traded products, the regulatory office said.
In particular, these examinations will review whether registrants comply with and follow their respective standards of conduct when recommending or advising clients regarding cryptoassets. SEC will focus on initial and ongoing understanding of the products, especially in scenarios where investors are based in retail trading, including older investors and investments involving retirement assets, they explain in the document.
Additionally, registrants must routinely review, update and improve their compliance practices. This includes reviews of cryptoasset wallets, custody practices, Bank Secrecy Act (BSA) compliance, valuation procedures, risk disclosures, and operational resilience practices such as data integrity and business continuity plans.
This move by the SEC has significant implications for the cryptocurrency industry in the United States. In a scenario where Gary Gensler continues to lead the organization, something that depends on the victory of the Democratic candidate Kamala Harris in the November elections, Regulation could be tightened further. Gensler has been known for his strict approach towards cryptocurrencies, which could portend a more challenging regulatory environment.
The SEC’s regulatory crusade is not new. Throughout this year and in previous years, the agency has carried out multiple actions that have resulted in billions of dollars in fineshundreds of accused and, in some cases, deprivation of liberty, as reported by CriptoNoticias.
This trend reflects a clear intention of the SEC to exercise more rigorous control over the cryptoasset market, under the argument of protecting investors and ensuring that market practices align with existing financial regulations.
This article was created using artificial intelligence and edited by a human Editor.