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SEC Omits Cryptocurrency from 2026 Priorities, Hinting at Lighter Oversight Under Trump

(03:07 PM UTC)
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  • SEC Omits Crypto from Priorities: The 2026 list prioritizes fiduciary duties, asset custody, and emerging AI threats over digital assets.

  • This aligns with the Trump administration’s pro-crypto agenda, marking a departure from previous enforcement-heavy approaches.

  • Regulatory uncertainty persists with overlapping SEC and CFTC roles, as noted in recent legislative proposals like the CLARITY Act.

SEC excludes crypto from 2026 priorities: Explore the regulatory shift, Trump-era changes, and implications for digital assets in this in-depth analysis.

What Are the SEC’s 2026 Examination Priorities?

The SEC’s 2026 examination priorities emphasize core oversight functions without including cryptocurrency or digital assets. The Division of Examination will target fiduciary duties, ensuring advisors act in clients’ best interests, alongside robust asset custody practices to safeguard investments. This strategic focus aims to enhance compliance and transparency in traditional financial sectors while addressing new risks from artificial intelligence in investment strategies.

How Does This Shift Impact Crypto Regulation?

The omission of crypto from the SEC’s 2026 priorities reflects a broader policy pivot under President Donald Trump, who has championed the digital asset industry. Previously, the agency scrutinized blockchain and crypto for fraud risks, but now it prioritizes dialogue with market participants. SEC Chair Paul Atkins emphasized this in the annual statement, noting it promotes constructive engagement rather than regulatory hurdles.

Experts view this as a positive development for innovation. According to analyses from financial regulatory observers, the change could accelerate industry growth by reducing enforcement fears. However, challenges remain, including the need for clear rules on digital commodities. The Commodity Futures Trading Commission (CFTC) may gain more authority through bills like the Digital Asset Market Clarity Act, which delineates roles between agencies.

International frameworks, such as the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework, add layers of complexity. While the SEC steps back, it retains authority to review crypto activities if compliance issues arise, ensuring investor protection without stifling progress.

Regulatory shifts reflect Trump-era lighter oversight, with ongoing uncertainty in crypto rules and compliance frameworks.

Key Highlights

Cryptocurrency will not be part of the U.S. Securities and Exchange Commission’s (SEC) priorities in its 2026 examination priorities for the current fiscal year. Instead, the SEC plans to address top priorities in areas such as safeguarding client assets, overseeing fiduciary duties, and responding to artificial intelligence and automated investment of risk.

According to an annual statement published by the agency, the 2026 examination list does not mention crypto, blockchain, or any other digital asset, as it did in past years. The SEC’s Division of Examination, which scrutinizes Wall Street firms for legal compliance, typically publishes this list to give registrants transparency into its focus areas.

SEC’s examination team said it would focus its efforts on core oversight areas such as Fiduciary Duty and adherence to standards of conduct, Asset Custody including the safeguarding of client assets, and compliance with new requirements for customer data privacy.

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A political and regulatory about-face

This shift reflects a wider push under President Donald Trump, who has politically and personally embraced the crypto sector. The current administration has laid out a sweeping agenda to promote the digital asset sector’s development, marking an about-face from the prior administration, which viewed the industry as rife with fraud and noncompliance.

The industry is likely to interpret this omission as another encouraging sign of a lighter regulatory hand. SEC Chair Paul Atkins said the 2026 agenda is meant to promote constructive dialogue with market participants rather than create regulatory pitfalls.

Paul Atkins said, “Today’s release of examination priorities should enable firms to prepare to have a constructive dialogue with SEC examiners and provide transparency into the priorities of the agency’s most public-facing division.”

Rule 14a-8 updates

In a separate development, the SEC updated how it will review shareholder proposals under Rule 14a-8 for the 2025-2026 proxy season. Rule 14a-8 allows shareholders to submit proposals for inclusion in a company’s proxy materials, giving them a voice on corporate governance, social issues, and other matters.

Following a 43-day federal government shutdown and a backlog of filings, the SEC’s Division of Corporation Finance will now focus only on no-action requests under Rule 14a-8(i)(1), which typically covers proposals a company cannot implement.

Other exclusion requests will no longer receive feedback or “no-action” letters. Companies can request acknowledgment by providing a clear rationale, but the SEC will not evaluate the reasoning.

Crypto oversight updates

At the same time, Congress is working on new laws to clarify crypto rules, including the Digital Asset Market Clarity Act (CLARITY Act). The bill would give the Commodity Futures Trading Commission (CFTC) more authority over “digital commodities.” It would also clarify the SEC’s role over “ancillary assets.”

Although crypto is not a top priority anymore, the SEC may review certain activities if necessary. Experts point out that regulatory uncertainty persists due to overlapping responsibilities between the SEC and CFTC, as well as international rules like the Organisation for Economic Co-operation and Development (OECD)’s Crypto-Asset Reporting Framework.

These updates indicate that the SEC is concentrating on its main oversight areas while mostly leaving crypto and shareholder proposals to industry practices and legal compliance.

Also Read: SEC Clears Path for Quicker Approval of Crypto ETFs

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Frequently Asked Questions

Why has the SEC excluded cryptocurrency from its 2026 examination priorities?

The SEC’s decision stems from a policy emphasis on core financial safeguards and emerging risks like AI, aligning with the administration’s goal to foster digital asset innovation. This exclusion, detailed in the annual statement, provides regulatory relief while maintaining oversight on traditional compliance areas.

What does this mean for the future of crypto regulation in the US?

This shift indicates a more supportive environment for crypto growth, with potential for clearer rules via legislation like the CLARITY Act. It encourages industry self-regulation but keeps agencies ready to intervene on investor protection issues, ensuring a balanced approach to digital asset development.

Key Takeaways

  • Regulatory Pivot: The SEC’s 2026 priorities omit crypto, focusing instead on fiduciary duties and asset protection to support market stability.
  • Administration Influence: Trump-era policies promote digital assets, reducing prior enforcement intensity and encouraging innovation.
  • Ongoing Clarity Needs: Legislative efforts like the CLARITY Act aim to define agency roles, addressing uncertainties in crypto oversight.

Conclusion

The SEC’s exclusion of cryptocurrency from 2026 examination priorities underscores a transformative phase in financial regulation, driven by the current administration’s pro-innovation stance. While core areas like fiduciary duties and AI risks take precedence, the evolving landscape for crypto oversight promises greater clarity through legislative advancements. Stakeholders should monitor these developments closely, positioning themselves for opportunities in the expanding digital asset sector.

Jocelyn Blake

Jocelyn Blake

Jocelyn Blake is a 29-year-old writer with a particular interest in NFTs (Non-Fungible Tokens). With a love for exploring the latest trends in the cryptocurrency space, Jocelyn provides valuable insights on the world of NFTs.
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