Crypto assets and other new technologies are on the U.S. Securities and Exchange Commission’s (SEC) list of priorities for 2023. Gary Gensler, head of the agency, said.
“The Division of Examinations will examine broker-dealers and RIAs that use new financial technology or employ new methods, including technology and online solutions,”
the press release said.
One of the division’s goals will be to examine digital asset firms’ compliance with relevant safeguards when making recommendations and providing investment advice.
Officials will also focus on assessing the frequency with which firms review compliance, disclosure and risk management practices.
Another issue will be ensuring that investment advisers comply with a new marketing rule that restricts the use of testimonials and endorsements, including from celebrities, when promoting financial products.
Other items on the agenda include a review of crypto firms’ cybersecurity practices and a review of investment advisers’ fiduciary duties. The latter includes examining compliance with risk assessment, asset custody and conflict of interest management.
In January, the media became aware of the review of RIAs’ compliance with rules and bylaws related to the custody of digital assets.
Recall that in November 2022, U.S. Rep. Tom Emmer criticized the head of the SEC for failing to regulate the digital asset industry, which led to the collapse of FTX.
Last year, the Commission brought 30 cases related to cryptocurrencies.
