SEC lists cryptocurrency as a focus of scrutiny in 2025

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Author: Turner Wright, CoinTelegraph; Compiled by: Bai Shui, Jinse Finance

The U.S. Securities and Exchange Commission (SEC) has once again included cryptocurrencies in its list of examination priorities for next year, despite the possibility of changes in its leadership and government control.

In the October 21 notice, the relevant department of the U.S. Securities and Exchange Commission released its priorities for 2025, including crypto assets and their "related products and services".

According to the regulator, it plans to focus on "offerings, sales, recommendations, advice, trading, and other activities involving crypto assets", and specifically mentioned spot Bitcoin and Ethereum exchange-traded products.

The U.S. Securities and Exchange Commission stated: "Given the volatility and activity in the crypto asset markets, the division will continue to monitor and, as appropriate, examine registered entities providing crypto asset-related services." It added:

"The division will assess registrants' practices to address technological risks associated with the use of blockchain and distributed ledger technology, including risks related to crypto asset custody."

Acting Director of the U.S. Securities and Exchange Commission's Examination Division, Keith Cassidy, said the priority list identified "key areas that may increase risk and harm to investors".

Chair Gary Gensler said the division would help participants "understand the rules", citing the need to protect investors and facilitate capital formation.

The increase in spot crypto ETFs represents a shift in the regulator's 2024 review focus. The SEC first approved a spot BTC exchange-traded product in January and a spot ETH product in May.

Leadership Change?

Although Gensler's term is expected to end in June 2026, many experts say he may leave the SEC as early as January 2025 once a new presidential administration takes office.

At the Bitcoin Conference in July, Republican candidate Donald Trump promised to fire the SEC chair "on day one" if re-elected, and there are reports that Democratic Vice President Kamala Harris is also looking for potential replacements.

Many have criticized the SEC's "aggressive regulation" under Gensler's leadership, as the commission has filed several lawsuits against crypto companies, alleging unregistered securities offerings. Although the Supreme Court's June opinion overturning the long-standing Chevron doctrine may impact the SEC's progress in court, the commission still has pending cases against companies like Coinbase and Ripple.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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