The U.S. Securities and Exchange Commission (SEC) has officially named cryptocurrency as one of its key examination priorities for 2025, signaling a clear intent to continue tightening its oversight of the digital asset industry. This move comes amidst growing regulatory scrutiny and ongoing legal disputes, most recently with the SEC issuing a Wells Notice to Crypto.com, highlighting the increasing tension between the regulator and crypto firms.

Key Areas of Focus
In 2025, the SEC’s Division of Examinations will focus on the “offer, sale, recommendation, advice, trading, and other activities involving crypto assets.” Special attention will be given to firms providing crypto-related services, ensuring compliance with securities laws. The SEC will also assess how crypto service providers manage custody, valuation, and operational resilience—especially regarding how they safeguard assets from technological risks like hacks.

Spot Bitcoin and Ether exchange-traded products (ETPs), which gained regulatory approval in 2024, will also be closely examined. This scrutiny highlights the SEC’s ongoing concern over the volatility of digital assets and its commitment to ensuring that firms handling these products adhere to high regulatory standards.

Industry Pushback
The SEC’s increasing regulatory actions have not come without criticism. Many in the crypto industry argue that the commission’s approach to “regulation by enforcement” has created uncertainty and stifled innovation. The Wells Notice served to Crypto.com, for instance, has sparked a lawsuit against the SEC, with the exchange accusing the regulator of overreach.

Additionally, Bitcoin and Ether remain the only cryptocurrencies with some degree of regulatory clarity, while the status of many other digital assets is still in question. This has caused frustration among crypto firms, which feel they are being unfairly targeted.

What to Expect in 2025
As the SEC intensifies its focus on the crypto space, companies offering digital asset services will face stricter oversight and potential enforcement actions. The 2024 U.S. Presidential Election could also impact how the SEC approaches crypto regulation, as both major candidates have expressed differing views on the current leadership and strategy of the commission.

For crypto firms and investors, staying compliant with these evolving regulations will be crucial as the industry continues to grow and mature in 2025. The SEC’s ongoing focus on crypto demonstrates that digital assets will remain under the regulatory microscope, potentially reshaping the future of the crypto landscape in the U.S.