SEC extends crypto focus into 2025 as regulation heats up ahead of 2024 election

The U.S. Securities and Exchange Commission (SEC) will continue to include cryptocurrency in its 2025 SEC Focus Review. This comes after no significant participants registered with the Commission in 2024. 

SEC prioritizes crypto oversight in 2025

The watch dog’s Division of Examinations released its priorities for 2025, including crypto assets and their “associated products and services.” This decision signals the agency’s ongoing focus on the crypto industry, particularly in monitoring the proliferation of crypto-related investments and services.

In an X post, Fox reporter Eleanor Terrett asked which crypto assets would be examined, pointing to BTC and ETH ETFs in particular. She noted that those ETFs are among the few crypto assets that the commission has engaged in with any regularity as a regulatory matter rather than strictly an enforcement one. Terrett questioned whether the exams would focus on these ETFs and the companies that work with them.

According to the regulatory watchdog, the Division will monitor registrants offering services related to crypto assets and, if required, investigate them in light of the volatility and activity surrounding the crypto asset markets.

The Division will assess registrant practices to address the technological risks associated with the use of blockchain and distributed ledger technology, including risks pertaining to the security of crypto assets.

~SEC

Despite most cryptocurrency firms not being registered with the SEC and therefore not paying registration fees, the agency has reiterated its commitment to reviewing the industry. This follows a similar focus in 2024. The agency will likely concentrate on making sure that regulations pertaining to data integrity, custody procedures, and operational resilience are followed. The Commission is also interested in evaluating how cryptocurrency companies handle risks associated with distributed ledger technology and blockchain.

Citing the necessity of protecting investors and promoting capital formation, Chair Gary Gensler stated that the Division will assist participants in “understanding the rules.”

Presidential candidates target SEC leadership changes to reshape the future of crypto regulation

The SEC’s increasingly strict stance on cryptocurrency regulation has emerged as a significant issue in the 2024 presidential race. Both Vice President Kamala Harris and former President Donald Trump have proposed stronger policies to support the crypto industry, signaling that the future of cryptocurrency regulation could shift depending on the election outcome.

During a July Bitcoin conference, Republican candidate Donald Trump promised to terminate Gensler’s position “on day one” if he wins reelection. Reports indicate that Democratic Vice President Kamala Harris is also considering possible successors.

Critics have taken focus on the agency’s “regulation by enforcement” strategy under Gensler, pointing to multiple lawsuits filed against crypto firms for allegedly conducting unregistered securities offerings. Although a recent Supreme Court ruling in June overturned the long-standing Chevron doctrine, which could impact the SEC’s future court strategies, the commission still faces ongoing cases involving Coinbase, Ripple, and other firms.