2024-10-28 01:12 |
The United States Securities and Exchange Commission (SEC) has listed Bitcoin and Ethereum in its scrutiny list for 2025. Both assets’ inclusion in the examination list indicates increased regulatory surveillance amid new products rolled out for institutional investors. Crypto users express concern about recent SEC market activities while being optimistic about clear rules.
SEC Includes Bitcoin In Examination ListThe United States securities regulator will increase scrutiny on digital assets next year. In a new release, the SEC listed Bitcoin and Ethereum as part of its examination list for the second year in a row. This comes after months of intense regulations leading to several lawsuits against crypto executives and firms.
Keith Cassidy, the Acting Director of Examinations at the SEC, noted that the list pointed out key areas that might pose risks to investors. Gary Gensler, the Chairman of the SEC, stressed investor protection, adding that participants would understand the rules through the division.
According to the release, the Commission will continue to monitor the proliferation of crypto investment conducting examinations on the offer, sale, trading, and advice. The launch of spot Bitcoin and Ether ETFs attracted billions to the crypto market after a series of rejections by the SEC. This SEC will regulate these funds and minor registrants and compliance.
“In particular, these examinations will review whether the registrants: (1) meet and follow their respective standards of conduct when recommending or advising customers and clients regarding crypto assets with a focus on an initial and ongoing understanding of the products that have a particular focus on scenarios where investors are retail-based (including older investors) and investments involving retirement assets…”
US Elections To Fuel Clear RulesThe SEC added crypto to the examination list in 2025 amid a possible leadership change next year. The Commission has implemented stricter rules against market participants, which has led to slow innovation and growth. While Gary Gensler cites the need to protect investors amid several industry scams, users say the regulation-by-enforcement approach harms innovation.
However, a United States election might usher in a change of the status quo as both candidates move pro-industry. Former President Donald Trump rolled out his plans for the market alongside a decentralized finance (DeFi) platform, pledging his commitment to Bitcoin. On the other hand, Kamala also hinted support for blockchains and Artificial Intelligence (AI).
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