The U.S. Securities and Exchange Commission (SEC) has added Bitcoin and Ethereum to its 2025 watch list. The inclusion of both assets on the research list signals increased regulatory scrutiny as new products are rolled out to institutional investors. Cryptocurrency users are optimistic about clear rules while expressing concern about recent SEC market activity.
SEC includes Bitcoin on review list
U.S. securities regulators plan to increase oversight of digital assets next year. In a new release, the SEC has listed Bitcoin and Ethereum as part of its review list for the second year in a row. This came after months of strict regulations that led to several lawsuits against crypto executives and companies.
Keith Cassidy, the SEC's acting director of examinations, noted that the list identifies important areas that may pose risks to investors. SEC Chairman Gary Gensler emphasized investor protection, adding that participants will understand the rules through the department.
According to the announcement, the committee will continue to monitor the proliferation of crypto investments and conduct investigations into recruitment, sales, trading, and advice. After a series of rejections by the SEC, the launch of Bitcoin and Ether spot ETFs has drawn billions of dollars into the crypto market. This SEC regulates these funds and minor registrants and compliance.
“Specifically, these reviews will examine whether the registrant: (1) whether they meet and follow their respective standards of conduct, with a particular focus on initial and ongoing understanding of the product when recommending or advising customers or clients regarding crypto assets; Scenarios where the investors are on an individual basis (including older investors) and the investments involve retirement assets…”
US elections promote clear rules
Amid a possible change in leadership next year, the SEC has added cryptocurrencies to its 2025 review list. The European Commission has introduced stricter rules for market participants, leading to a slowdown in innovation and growth. Gary Gensler cites the need to protect investors amid several industry frauds, while users argue that the enforcement approach to regulation is hurting innovation.
However, in the US election, both candidates are showing pro-industry moves, which could bring about a change in the status quo. Former President Donald Trump has pledged his commitment to Bitcoin, rolling out market plans alongside decentralized finance (DeFi) platforms. Meanwhile, Kamara also hinted at support for blockchain and artificial intelligence (AI).