The US Securities and Exchange Commission’s (“SEC”) Division of Examinations (“Examination Division”) recently announced its 2024 Examination Priorities, placing a notable emphasis on cryptocurrency regulation and information security. This information was announced on October 16, 2023, indicating an expanding focus on newly emerging financial technologies and potential security risks.
Particularly noteworthy is the SEC’s growing attention towards cryptocurrencies and related financial technologies. With the consistent rise in the adoption of digital currencies and blockchain-based functions, this focus reflects the need for robust regulatory protocols in the constantly evolving crypto-space. It signifies the regulator’s intent to ensure a level playing field and maintain investor confidence.
Furthermore, the SEC plans to enhance its surveillance of corporations’ policies, procedures, and efforts in relation to information security. Given the escalating number of massive data breaches and cybersecurity threats, this step echoes the critical imperative for businesses to bolster their data security practices.
Registrants are being advised to ensure that their internal measures around these key areas adequately address the concerns articulated in the SEC report. It is an indication for legal professionals and corporations to anticipate stricter regulations and compliance requirements in relation to cryptocurrencies and data protection as we move into 2024.
For comprehensive insights on the SEC’s 2024 Examination Priorities, consider reading the full report from White & Case LLP on JD Supra.