The United States Securities and Exchange Commission (SEC) has listed Bitcoin and Ethereum on its review list for 2025. The inclusion of both assets in the review list indicates increased regulatory oversight amid new products being rolled out for institutional investors. Crypto users are expressing concern over recent SEC market activity while being optimistic about clear rules.
SEC Includes Bitcoin in Examination List
The US securities regulator will strengthen its oversight of digital assets next year. In a new release, the SEC placed Bitcoin and Ethereum on its examination list for the second year in a row. This comes after months of intense regulations that led to several lawsuits against crypto executives and companies.
Keith Cassidy, acting director of examinations at the SEC, noted that the list highlights key areas that could present risks to investors. Gary Gensler, chairman of the SEC, emphasized 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 investments by conducting reviews on offering, selling, trading and advising. The launch of spot Bitcoin and Ether ETFs has attracted billions into the crypto market after a series of rejections by the SEC. This SEC will regulate these funds, minor filers and their compliance.
“In particular, these reviews will examine whether registrants: (1) respect and follow their respective standards of conduct when recommending or advising clients regarding crypto assets, with emphasis on an initial and ongoing understanding of the products that have a particular focus on scenarios where investors are individuals (including older investors) and investments involving retirement assets…”
US elections will fuel clear rules
The SEC added crypto to the 2025 review list amid a possible change in leadership next year. The Commission has put in place stricter rules against market players, leading to a slowdown in innovation and growth. As Gary Gensler discusses the need to protect investors from several industry scams, users say the enforcement approach harms innovation.
However, a US election could mark the start of a change in the status quo, with both candidates being 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 at supporting blockchains and artificial intelligence (AI).