Washington, D.C. — The U.S. Securities and Exchange Commission (SEC) has removed cryptocurrency assets from its fiscal year 2026 examination priorities, marking a notable shift in its regulatory focus. The announcement comes as the agency’s Division of Examinations pivots to emphasize fiduciary duty, cybersecurity, customer data privacy, and anti-money laundering (AML) concerns.
A Shift in Regulatory Focus
In its newly published priorities for fiscal 2026, the SEC’s Division of Examinations — which oversees broker-dealers, investment advisers, exchanges, and other market intermediaries — has dropped any standalone section dedicated to crypto-asset activity. Previous versions of the examination agenda had explicitly flagged digital assets, noting risks related to volatility, custody practices, and the offering and trading of crypto-related products.
The SEC now says it will concentrate more on traditional regulatory issues: whether firms are meeting their fiduciary obligations, how they steward client assets, how they safeguard data, and how they guard against illicit finance.
A Pro-Crypto Turn Under Trump
Observers view the change as aligned with the broader pro-crypto policy agenda of President Donald Trump’s administration. In January 2025, Trump signed Executive Order 14178, titled “Strengthening American Leadership in Digital Financial Technology,” which resounded with industry-friendly signals.
Further reinforcing that agenda, in March 2025 Trump issued another order to create a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile — with both built from seized cryptocurrencies rather than taxpayer-funded purchases. The reserve, according to the White House, will treat bitcoin as a long-term national store of value.
These steps effectively signal that the administration sees digital assets as a strategic asset class worth nurturing rather than merely a regulatory risk.
What the SEC Is Prioritizing Instead
The SEC’s Division of Examinations has identified several areas of heightened scrutiny for 2026:
- Fiduciary duty and standards of conduct: Ensuring that advisers act in their clients’ best interests.
- Asset custody: How firms safeguard client assets, particularly in an increasingly digital financial landscape.
- Customer data privacy: Introducing protections in light of increasingly stringent data-security expectations.
- Anti-money laundering (AML): Reinforcing controls around financial crime and illicit flows — a perennial concern for financial regulators.
- Cybersecurity: Given evolving cyber risks, firms will face more rigorous evaluations of how they defend against breaches or operational disruption.
Why This Matters to Crypto Stakeholders
For the crypto industry, the omission of digital assets from explicit regulatory scrutiny may be perceived as a vote of confidence — or at least a signal that the SEC’s priorities are shifting away from punitive oversight. Some market participants may welcome the reduced threat of targeted examinations.
For regulators and compliance teams, the recalibration highlights a reminder: even without explicit crypto designation, firms that handle digital-asset exposures are not entirely off the hook. Custody practices, data safeguards, and AML frameworks remain key areas of regulatory concern.
For investors, the shift could translate into more stable regulatory conditions, particularly for institutions cautious about digital asset risks. But it may also raise questions about whether less regulatory enforcement could increase systemic risk if firms become complacent.
Potential Risks and Criticisms
Some critics may argue that de-emphasizing crypto in exam priorities risks underestimating persistent systemic risks, such as liquidity stress during volatility, operational failures, or misuse of assets for illicit finance.
Moreover, although the SEC’s list of exam priorities is influential, a spokesperson for the agency noted that the list is not exhaustive. This suggests that examiners could still probe crypto-related firms; the absence of a dedicated “crypto” section does not preclude scrutiny.
There is also a potential reputational risk: if the crypto sector sees less regulatory pressure, stakeholders may worry about too-soft oversight or regulatory capture — especially given the Trump administration’s overt support for digital assets.
Strategic and Political Implications
This shift in examination priorities may reflect a broader strategic alignment: the Trump administration has made clear its interest in integrating digital assets into national financial infrastructure, not merely as speculative assets, but as part of a long-term reserve approach.
By deprioritizing crypto for examination, the SEC may be trying to facilitate innovation while still holding firms accountable — focusing on “constructive dialogue” over punitive enforcement. SEC Chair Paul Atkins has echoed this sentiment, emphasizing transparency and engagement rather than a “gotcha” approach to examinations.
Looking Ahead
- Industry watchers will closely monitor whether this reduced emphasis leads to a surge in digital-asset product offerings, particularly from regulated financial firms.
- Regulated entities should not become complacent: even without a named crypto priority, key risks like custody, data privacy, and AML remain squarely in the SEC’s crosshairs.
- Policymakers and lawmakers may debate whether the SEC’s approach strikes the right balance between innovation and investor protection in a fast-evolving digital finance era.
In sum, the SEC’s decision to drop explicit crypto mention from its 2026 exam priorities marks a subtle but potentially meaningful policy turn — one that aligns with the administration’s broader pro-crypto agenda, while still retaining strong guardrails around traditional regulatory risks.
