The US Securities and Exchange Commission (SEC) is showing no signs of slowing down its regulatory scrutiny and enforcement actions against the crypto industry. The SEC’s Division of Examinations has announced its priorities for 2024, indicating a potential tightening of regulations for crypto exchanges, firms, and cryptocurrencies classified as securities. The Division will focus on broker-dealers and advisers offering new products and services, particularly those utilizing technology and online solutions. It will also scrutinize automated investment tools, artificial intelligence, trading algorithms, and the risks associated with emerging technologies. The Division will closely monitor and examine registrants involved in crypto assets, assessing their activities related to offer, sale, recommendation, advice, and trading. Compliance practices, risk disclosures, and operational resiliency will be evaluated, with a particular focus on advising retail-based investors and investments involving retirement assets. The Division will also examine AML compliance, including custody requirements, disclosure accuracy, security risks related to blockchain and distributed ledger technology, and AML programs tailored to business models and associated risks. Independent testing, customer identification programs, and compliance with OFAC sanctions will be reviewed. The impact of these regulatory actions on the industry’s innovation and growth remains uncertain, but enforcement actions are likely to escalate unless there are changes in SEC leadership.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | None |
| Companies | US Securities and Exchange Commission (SEC), Office of Foreign Assets Control (OFAC), Advisers Act, Division of Examinations, Howey Test |
| Currencies | None |
| Securities | None |
