SEC to Increase Scrutiny of Crypto-Related Investment Firms
The U.S. Securities and Exchange Commission (SEC) has announced that it will be increasing its scrutiny of broker–dealers and investment advisers that deal in cryptocurrencies this year. The SEC will be examining these firms to ensure that they are following the necessary standards of care when making recommendations, referrals, or providing investment advice. This increased oversight is part of the SEC‘s annual examination priorities and is intended to protect investors from potential risks associated with crypto–related investments. The SEC’s announcement is a reminder to all investment firms that they must adhere to the highest standards of care when dealing with cryptocurrencies.
SEC Chair Gary Gensler Sets New Priorities for Crypto Regulation
The Securities and Exchange Commission (SEC) has announced new priorities for its examination division, with a focus on protecting investors in the growing cryptocurrency markets. SEC Chair Gary Gensler, who has long viewed most cryptocurrencies as securities that need registration, said these priorities aim to protect investors “in a time of growing markets, evolving technologies, and new forms of risk.” The annual priorities differ from last year’s, which included a more brief section on crypto that also focused on the “custody arrangements” for digital assets. The SEC has also warned investors to be wary of the crypto they may include in their self–administered retirement accounts. With the new priorities, the SEC is taking a proactive approach to ensure investors are protected in the ever–evolving cryptocurrency markets.
