The SEC’s Division of Examinations, which reviews the legal compliance of investment advisers, broker-dealers, clearing agencies, exchanges and others, said it will focus on fiduciary duty, standards of conduct and custody of assets as well as new client data privacy requirements, among other topics.
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However, the statement did not contain any standalone section explicitly focusing on crypto activity and digital asset volatility, as was the case in previous years. The current U.S. government fiscal year ends September 30, 2026.
WHY IT IS IMPORTANT
In response to a request for comment, an SEC spokesperson referred to a passage in Monday’s announcement that said this year’s priorities were “not…an exhaustive list of all areas” that SEC examiners will focus on.
KEY QUOTE
“Examinations are an important part of accomplishing the agency’s mission, but they should not be a trapping exercise,” SEC Chairman Paul Atkins said in the announcement. “Today’s release of examination priorities should allow companies to prepare to have a constructive dialogue with SEC examiners and provide transparency on the priorities of the agency’s most public-facing division.”
Reporting by Douglas Gillison in Washington; Editing by Matthew Lewis
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