The U.S. SEC (Securities and Exchange Commission) has managed to publish its primary examination priorities for 2024, including crypto examinations and monitoring. The regulator of securities disclosed, “Examinations of registrants will focus on the offer, sale, recommendation of, advice regarding, trading in, and other activities in crypto assets or related products.”
Division Of Examinations’ 2024 Priorities:
The U.S. SEC announced on Monday that its Examinations Division has released the “2024 examination priorities to inform investors and registrants of the key risks, examination topics, and priorities that the division plans to focus on in the upcoming year.”
The regulator of securities explained, “This year’s examinations will prioritize areas that pose emerging risks to investors or the markets in addition to core and perennial risk areas.”
Meanwhile, the Securities and Exchange Commission added, “Given the continued volatility of, and activity around, the crypto asset markets, the division will continue to monitor and, when appropriate, conduct examinations of registrants.”
The securities watchdog also added, “Examinations of registrants will focus on the offer, sale, recommendation of, advice regarding, trading in, and other activities in crypto assets or related products.”
Moreover, the Securities and Exchange Commission also stated that it makes sure that all the registrants opt to “routinely review, update, and enhance their compliance practices.” These practices include custody practices, valuation procedures, compliance reviews, BSA (Bank Secrecy Act), and crypto wallet reviews.
In these cases, operational resiliency guidelines include business continuity and data integrity plans. The regulator also added, “With respect to crypto assets that are funds or securities, the division will consider whether advisers are complying with the custody requirements under the Advisers Act (Rule 206(4)-2).”
The SEC also noted that although the Examinations Division “will allocate significant resources to the examination issues,” it will conduct various examinations targeting emerging or new risks, market events, investor concerns, services, and products.
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