SEC Policy Shift: Crypto Assets Officially Removed from 2026 Review Focus

The U.S. Securities and Exchange Commission (SEC) has, in its latest release “2026 Review Priorities”, for the first time not classified Crypto Assets as an independent risk category, marking a significant shift in regulatory attitude. Compared to the special focus on Crypto Assets in the documents for 2024 and 2025, the new document incorporates related risks into broader technological themes such as cybersecurity and AML.

This policy adjustment occurred against the backdrop of the Trump administration's pro-crypto policies, while the number of SEC enforcement actions dropped from 46 in 2023 to 33 in 2024, a decrease of 30%. The shift in the regulatory environment is injecting new certainty into the digital asset market.

Analysis of Key Adjustments in SEC Review Focus

The SEC's review department released a 17-page document titled “2026 Review Priorities,” which details the areas of concern for investment advisors, funds, brokers, and market utilities. In stark contrast to previous years, the document does not mention terms such as “Crypto Assets,” “encryption assets,” “digital assets,” “virtual currency,” or “blockchain” at all, even in sections that previously involved crypto assets like financial technology and AML. This omission is symbolically significant, indicating that regulators are beginning to view crypto assets as part of a mature market rather than a special risk category.

The document emphasizes information security, operational resilience, identity theft, the revised Regulation S-P, and traditional financial regulatory areas such as AML. In the emerging financial technology section, the SEC mainly focuses on automated advice, algorithms, and artificial intelligence, including whether these tools generate compliance recommendations. This shift reflects the evolution of regulatory thinking – categorizing crypto asset-related risks within the existing regulatory framework rather than treating them separately. This “normalization” approach is, in fact, an acknowledgment of the gradual integration of digital assets into the mainstream financial system.

Changes in the Political Environment and Regulatory Direction

This policy shift is closely related to the regulatory direction adjustment brought about by the change of power in the White House. The newly sworn-in SEC Chairman Paul S. Atkins, who took office in April 2025, has always been known for advocating light regulation and emphasizing capital formation. His regulatory philosophy is highly consistent with President Trump's pro-Crypto Assets policy direction. In fact, starting from the eve of his inauguration, the Trump family launched extensive Crypto Assets-related business plans, ranging from the digital asset company World Liberty Financial to Official Trump and Melania meme coin, which have brought the Trump family over 1 billion dollars in profits.

The government's policy shift is reflected on multiple levels. In March 2025, the White House released a briefing, announcing the establishment of a strategic Bitcoin reserve and a U.S. digital asset inventory. At the same time, the government instructed to limit the federal government's work on central bank digital currencies and established a presidential digital currency market working group. These initiatives collectively represent a framework shift in the U.S. digital asset strategy, moving from defensive regulation to a strategic embrace, providing a clearer political signal for industry development.

SEC Regulatory Focus Evolution History

2024: Dedicated Chapter “Crypto Assets and Emerging Financial Technologies”

2025: Continue to classify Crypto Assets as key risk areas

2026: Crypto-related terms completely disappear, risks merge into traditional categories

Law enforcement actions: 46 cases in 2023 → 33 cases in 2024 (decrease of 30%)

SEC Law Enforcement Trends and New Developments in Case Handling

As the regulatory focus shifts, the SEC's enforcement activities have also shown significant changes. According to data from Cornerstone Research, the SEC took 46 enforcement actions related to crypto in 2023, setting a historical record, while in 2024 it dropped to 33, a year-on-year decrease of about 30%. At the institutional level, the fiscal year 2024 ended with a total of 583 enforcement actions, down from the previous year's level, while financial remediation reached a record $8.2 billion due to the Terraform Labs settlement.

Under the leadership of the new chairman, several legacy issues have been resolved. The case against Ripple ended with a $125 million fine and an injunction limited to institutional sales; the investigation into Robinhood's crypto business was terminated without charges; the lawsuit accusing Coinbase of unregistered exchange activity and staking products has been dismissed. The handling of these cases demonstrates a shift in the SEC's enforcement strategy, moving from broad crackdowns to more targeted regulatory interventions, providing clearer development paths for compliant enterprises.

Comparison and Analysis of Global Crypto Regulation Landscape

In contrast to the softening of the regulatory environment in the United States, other major jurisdictions are moving towards a more structured crypto regulatory framework. The EU's Crypto Assets Market (MiCA) framework is now fully in effect, with stablecoin rules taking effect on June 30, 2024, and a broader regime for crypto asset service providers applicable from December 30, 2024. According to the European Securities and Markets Authority, non-compliant stablecoins face delisting before March 31, 2025.

The UK has published a draft statutory instrument to create new regulated activities for crypto assets and has consulted on trading platforms, intermediaries, staking, and decentralized finance. Hong Kong continues to improve its licensing system for virtual asset trading platforms and announced in 2025 the “A-S-P-I-Re” roadmap, which includes 12 measures, including allowing licensed platforms to share global order books with affiliated companies to enhance liquidity. The Monetary Authority of Singapore finalized a framework for single-currency stablecoins pegged to the Singapore dollar or G10 currencies in 2023, which will come into effect in 2024.

Crypto Assets Market Reaction and Industry Impact Assessment

The changes in the regulatory environment have begun to affect the behavior of market participants. The global Crypto Assets market capitalization surged in July 2025, with significant net inflows into U.S. spot Bitcoin exchange-traded funds in 2024, maintaining a flow of funds for most of 2025. The investor base for crypto-related products now includes large asset management firms, brokerages, and retirement channels, all of which fall under the SEC's scrutiny.

Despite recent market adjustments—Bitcoin has fallen from its October highs, Ethereum has weakened, and the broader Crypto Assets market has experienced significant losses in a short period—improved regulatory clarity provides a more stable foundation for institutional participation. Investors can now make long-term decisions based on a more predictable regulatory environment rather than dealing with constantly changing enforcement risks. This certainty is crucial for the transition of Crypto Assets from a speculative asset class to a mature asset class.

The shift in focus of the SEC's scrutiny is like a mirror, reflecting the changing role of Crypto Assets in the regulatory landscape of the United States: from being the “problem child” that requires special attention to gradually becoming a formal member of the financial family. When regulators no longer see encryption assets as worthy of being singled out, it may be a true sign of the industry's maturity—just as internet technology is no longer referred to as “new media.” This process of “normalization” may prove the enduring vitality of digital assets more profoundly than any price surge.

FAQ

What does the SEC moving Crypto Assets out of the review focus mean?

This means that the SEC no longer views Crypto Assets as a separate risk category that requires special follow, but instead incorporates its related risks into the traditional financial regulatory framework, reflecting that digital assets are gradually integrating into the mainstream financial system.

What are the political reasons behind this transformation?

The pro-crypto policy direction of the Trump administration and the light regulatory philosophy of the new SEC chairman Paul S. Atkins have jointly propelled this shift, and the White House has also established a strategic Bitcoin reserve and a digital asset working group.

Is the SEC's enforcement力度 against the crypto industry weakening?

Data shows that enforcement actions related to encryption have decreased from 46 in 2023 to 33 in 2024, while several high-profile cases such as lawsuits against Ripple, Robinhood, and Coinbase have been settled with lighter penalties or dismissed.

What are the trends of encryption regulation in other major economies?

The EU MiCA framework has come into full effect, the UK is creating new regulatory activities for crypto assets, and Hong Kong and Singapore are also improving their respective regulatory systems, forming a more structured global crypto regulatory framework.

What impact does this policy change have on the market?

Increased regulatory clarity has provided a more stable foundation for institutional participation, with the US spot Bitcoin ETF continuing to attract inflows, expanding the investor base to traditional asset management firms and retirement channels.