SEC Dumps Crypto? What’s Next, a Tea Party?

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U.S. regulators removed crypto from their 2026 examination priorities, marking a stark policy shift from the previous administration. 🎤

Imagine that! After years of treating crypto like a rogue toddler at a tea party, the SEC has finally realized it’s just a fad. What’s next? A mandatory nap time for blockchain? 🛌

  • The SEC is shifting away from treating crypto as a standalone risk, a departure from its 2024 and 2025 focus on crypto assets. Because nothing says “regulation” like letting machines decide. 🤖
  • The SEC’s new priorities emphasize emerging technologies like AI, lumping crypto risks into broader topics like cybersecurity and anti-money laundering. Because who needs clarity when you can have a buffet of confusion? 🍽️
  • The White House’s pro-crypto stance, coinciding with the Trump family’s business ventures, reflect a shift toward a lighter regulatory approach. Because nothing says “trust us” like a family dynasty with a crypto empire. 🦁💰

The U.S. Securities and Exchange Commission will not treat cryptocurrency as a standalone risk in its fiscal 2026 priorities, marking a departure from the agency’s approach in 2024 and 2025. Because if you can’t regulate it, why bother? 🤷‍♂️

The Division of Examinations’ 17-page “2026 Examination Priorities” outlines focus areas for investment advisers, funds, broker-dealers, and market utilities, with emphasis on information security, operational resiliency, identity theft, the amended Regulation S-P, and anti-money laundering. Because nothing says “safety” like a checklist that’s longer than a toddler’s bedtime story. 📖👶

The section on emerging financial technology centers on automated advice, algorithms, and artificial intelligence, including whether tools produce compliant recommendations. Because who needs human judgment when you can have a robot with a checklist? 🤖

The omission represents a notable shift from recent years. The SEC’s 2024 priorities, under former President Joe Biden, included a section titled “Crypto Assets and Emerging Financial Technology,” stating examinations would prioritize firms active in crypto assets and related products. Now it’s all about AI, because nothing says “innovation” like replacing humans with machines. 🧠🤖

The 2025 priorities again referenced crypto assets as critical risk areas. But now, it’s like crypto never existed. Because if you ignore it, maybe it’ll go away. 🙃

The 2026 policy shift follows changes in White House directives to limit federal work on central bank digital currency, and to establish a President’s Working Group on digital asset markets. Because nothing says “progress” like a working group that’s already a decade behind. 🕒

A March fact sheet announced the establishment of a Strategic Bitcoin Reserve and a U.S. digital asset stockpile, according to the White House. Because nothing says “economic stability” like hoarding digital coins. 🧾

A crypto-fied White House

Paul S. Atkins, sworn in as SEC chair in April, has been associated with a lighter regulatory approach and an emphasis on capital formation. Because who needs rules when you can have a “lighter” approach? 🕊️

His stance coincides with one of President Trump’s pro-crypto priorities. Since before Inauguration Day, Trump and his family launched a wide range of crypto-related ventures. From a digital asset firm, World Liberty Financial, to Official Trump and Melania memecoins, these ventures have made the Trump family over $1 billion in profits. Because nothing says “success” like selling memes. 🎉

Meanwhile, enforcement activity has declined from peak levels. Cornerstone Research counted 46 crypto-related enforcement actions in 2023, the most on record, and 33 in 2024, down approximately 30 percent year over year. Because if you can’t catch them, why bother? 🕵️‍♂️

Across the agency, fiscal 2024 closed with 583 total enforcement actions, down from the prior year, while financial remedies reached a record $8.2 billion, heavily influenced by the Terraform Labs settlement, according to the SEC’s fiscal 2024 enforcement results. Because nothing says “justice” like a $8.2 billion fine for a failed startup. 💸

Under the new chair, several legacy matters have been resolved:

  • A case against Ripple ended with a $125 million penalty and an injunction limited to institutional sales. Because nothing says “fairness” like a fine that’s just a drop in the bucket. 💸
  • An investigation into Robinhood’s crypto business disappeared without charges. Because if you can’t prove it, why bother? 🤷‍♂️
  • A lawsuit against Coinbase, which had alleged unregistered exchange activity and staking products, was dismissed. Because if you can’t sue them, maybe they’re innocent? 🤔

The global crypto market capitalization surged in July, according to market data. U.S. spot Bitcoin exchange-traded funds attracted significant net inflows in 2024, with continued flows for most of 2025. The investor base for crypto-linked products now spans large asset managers, broker-dealers, and retirement channels that fall within the SEC’s examination perimeter. Because nothing says “trust” like investing in a digital asset that’s worth less than a sandwich. 🥪

Bitcoin has declined from its October peak, and Ethereum has weakened, according to market data. The broader crypto market experienced substantial losses over a short period. Because nothing says “stability” like a market that’s more volatile than a toddler on a sugar rush. 🍬💥

International regulators are moving toward sector-specific frameworks. The European Union’s Markets in Crypto-Assets framework is now fully in effect, with stablecoin rules live since June 30, 2024, and the broader regime for crypto-asset service providers applying since December 30, 2024, according to the European Securities and Markets Authority. Non-compliant stablecoins faced delistings by March 31, according to ESMA. Because nothing says “regulation” like a 100-page document that no one reads. 📚

Crypto across the globe

The U.K. has published a draft statutory instrument to create new regulated activities for crypto assets and opened consultations on trading platforms, intermediation, staking, and decentralized finance. Because nothing says “innovation” like a 500-page rulebook. 📖

Hong Kong continues to refine its licensing regime for virtual asset trading platforms and announced a 12-initiative “A-S-P-I-Re” roadmap in 2025, including steps to allow licensed platforms to share global order books with affiliates to boost liquidity. Because nothing says “efficiency” like a roadmap that’s more complicated than a subway map. 🗺️

Singapore’s Monetary Authority finalized a stablecoin framework in 2023, which took effect in 2024, for single-currency stablecoins pegged to the Singapore dollar or G10 currencies, according to MAS. Because nothing says “trust” like a stablecoin that’s only as stable as a wobbly chair. 🪑

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2025-11-19 02:48