The Securities and Exchange Commission (SEC) has quietly but significantly altered its regulatory approach by removing cryptocurrencies and digital assets from its 2026 examination priorities. This notable shift suggests that crypto is no longer treated as a special risk area by the agency under Chairman Paul Atkins, marking a substantial change in the regulatory landscape.
A Clear Regulatory Shift
The SEC’s Division of Examinations recently published its priorities for fiscal year 2026, noticeably excluding the standalone section on crypto-assets that had been a staple in previous years’ reports. Before this change, the agency had consistently emphasized monitoring of crypto asset-related services, particularly focusing on market volatility and compliance concerns.
Under the previous administration, the 2025 report explicitly stated that “given the volatility and activity involving the crypto asset markets,” the division would monitor registrants offering “crypto asset-related services.” The complete elimination of this focus area marks a decisive turn in regulatory philosophy. Instead, the 2026 priorities will center on fiduciary duties, standards of conduct, asset custody, and updated customer data-privacy requirements.
When questioned about this omission, an SEC spokesperson noted that the listed priorities are “not an exhaustive list of all areas” that examiners might review. However, the crypto industry will likely interpret this change as a positive signal reflecting a more accommodating regulatory environment.
New Leadership, New Direction
This shift follows the leadership transition at the SEC after President Trump appointed Paul Atkins as Chairman. Atkins has taken a markedly different approach compared to his predecessor, Gary Gensler, who had pursued aggressive enforcement actions against crypto companies.
“Examinations are an important component of accomplishing the agency’s mission, but they should not be a ‘gotcha’ exercise,” Chairman Atkins stated in the announcement. “Today’s release of examination priorities should enable firms to prepare for constructive dialogue with SEC examiners and provide transparency into the priorities of the agency’s most public-facing division.”
The timing of this change aligns with broader enforcement trends at the SEC. According to data from Cornerstone Research and New York University’s Pollack Center for Law and Business, there has been a steep 30% drop in enforcement actions against public companies in fiscal year 2025 compared to the previous year, with most actions occurring before the leadership transition in January.
Broader Impact on Crypto Regulation
The removal of crypto from examination priorities represents more than a procedural change—it signals a fundamental shift in how digital assets might be regulated under the current administration. Under President Trump, who has publicly supported the crypto sector, the SEC has begun laying out a more comprehensive agenda to accommodate and potentially promote the development of digital assets.
This marks a sharp contrast from the previous administration’s approach, which viewed the industry as fraught with fraud and non-compliance issues. The change could have far-reaching implications for crypto businesses, potentially reducing regulatory burdens and creating a more innovation-friendly environment.
While cryptocurrency no longer appears as a standalone focus area, the SEC will increase scrutiny of mergers and acquisitions in the investment advisory space. The agency will particularly focus on firms absorbed into existing advisory practices that “may result in accompanying operational and/or compliance complexities or new conflicts of interest.”
Looking Forward: What This Means for Crypto
For the cryptocurrency industry, this regulatory shift may herald a new era of reduced friction with the SEC. Companies operating in the digital asset space can likely expect fewer targeted examinations focused specifically on crypto offerings. This could translate to lower compliance costs and greater operational freedom.
However, industry participants should remain cautious. While crypto is no longer a specific examination priority, the SEC retains full authority to investigate any activities it deems potentially harmful to investors or markets. The agency’s general focus on fiduciary duties and investor protection will continue to apply to all market participants, including those in the crypto space.
The removal of crypto from examination priorities reflects a broader recalibration of regulatory focus under Chairman Atkins and the current administration. As this new approach continues to unfold, both traditional financial institutions and crypto companies will be watching closely to understand how this signals longer-term policy changes at one of the nation’s most powerful financial regulators.
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