SEC Review Department: The focus of inspection next year will include crypto trading brokers, etc.

The U.S. SEC released the "2024 Review Focus Report" on October 16. For more than a decade, the agency’s review unit has been issuing similar reports to let its registrants know about the emerging risks it will focus on, and cryptocurrency trading brokers and others have been notified. The SEC’s review division has expanded its capabilities and established teams across its various programs to address cryptocurrency, fintech, artificial intelligence and cybersecurity issues in 2023, the report said. The SEC is continuing to observe broker-dealers and advisors working in cryptocurrencies. The department is reviewing registrants that offer new business practices, specifically “technology and online solutions that meet compliance and market needs, such as automated investment tools, artificial intelligence and trading algorithms or platforms.” The SEC review unit will examine how well registrants meet standards of conduct in relation to customer advice and their familiarity with the products offered by the registrant. It will also assess the handling of risks associated with the use of blockchain and distributed ledger technology. (Cointelegraph)