Every year SEC Office of Compliance Inspections and Examinations publishes their examination priorities in order to improve compliance, prevent fraud and monitor risk. This year, inspectors will focus on crypto and ICO fraud.
The financial inspectors of the SEC announced examination priorities on February 7 of 2018. The inspectors will monitor the growth of cryptocurrencies and initial coin offerings (ICOs). Also, they will focus on matters involving critical market infrastructure, duties to retail investors, and developments in cryptocurrency, initial coin offerings, and secondary market trading.
Jay Clayton, SEC Chairman, appreciates OCIE’s dedication to maximizing the effectiveness of their resources with a keen eye toward asset verification, market infrastructure, and duties owed to retail investors.
According to the document, the cryptocurrency and ICO markets have grown rapidly and presented a number of risks for retail investors that is why the regulators will continue to monitor the sale of these products, and where the products are securities, examine the regulatory compliance.