For those who may have missed it, on March 30, the @Securities and Exchange Commission’s Division of Examinations announced its 2022 examination priorities. In line with President Biden’s March 9 Executive Order on Crypto, examinations will include emerging technologies, and crypto assets.
As stated by SEC Chair Gary Gensler, “The Division’s 2022 examination priorities identify key risk areas that we expect registrants to address, manage, and mitigate with vigilance”. At a time when the number of crypto users and platforms are growing at an exponential rate, the Division is expanding its investigations into the security threats created by new technology and determining if there are gaps within compliance platforms. Examiners will review if the risks associated with emerging technologies were considered and if the firm’s policies and procedures meet those risks. Crypto firms should be working with their compliance teams to make a holistic determination on whether their controls address their risks.