Table of Contents
The United States Securities and Exchange Commission (SEC) announced that its top priorities for 2023 include cryptocurrencies and emerging technologies.
On Tuesday, the Division of Examinations of the SEC announced its list of priorities for 2023. The Division of Examination conducts market analysis to identify potential risks. In a press release, the regulator named “crypto assets” and emerging technologies as critical areas of focus for the upcoming year. According to reports, the SEC claims it chose to focus on areas it believes pose the most significant potential risks to investors and the integrity of the U.S. capital markets.
Chair of the SEC, Gary Gensler, said:
In a time of growing markets, evolving technologies, and new forms of risk, our Division of Examinations continues to protect investors,
In executing against the 2023 priorities, the Division will help ensure compliance with the federal securities laws and rules.
SEC Will Monitor “Standards of Care”
The Division will examine broker-dealers and investment advisors who use emerging financial technologies, including crypto assets, to protect investors better. The agency will assess whether the intermediaries are meeting the expected requirements of investors and whether they routinely review and update their risk management procedures. The SEC said its examination aims to ensure “adequate risk management and standards of care” are observed.
According to the SEC’s statement:
The division will conduct examinations of broker-dealers and RIAs that are using emerging financial technologies or employing new practices, including technological and on-line solutions, to meet the demands of compliance and marketing and to service investor accounts.
Richard R. Best, director of the Division, said in a Tweet that the SEC is focusing on priorities in a “changing landscape,” as well as the risks associated with such changes.
Today we announced the Division of Examinations 2023 priorities. The Division publishes its examination priorities annually to provide insights into its risk-based approach.— U.S. Securities and Exchange Commission (@SECGov) February 7, 2023
Other focus areas for the SEC in 2023 include environmental, social, and governance (ESG) investing and the cybersecurity of securities professionals.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.