SEC Crypto Regulation 2025: From Crackdowns to Constructive Frameworks
After years of aggressive enforcement, the SEC is reimagining its approach to crypto regulation in the U.S. During Q2 2025, the agency dissolved its former crypto enforcement unit and launched a dedicated Crypto Task Force — signaling a move away from punitive action and toward structured rulemaking. In our latest Regulatory Roundup webinar, Eversheds Sutherland’s experts unpacked these shifts and what they mean for firms exploring or managing crypto engagement.
Why it matters
This pivot doesn’t signal a free-for-all. Rather, it acknowledges that previous enforcement-heavy strategies left financial services firms hesitant to innovate. The SEC now appears focused on fostering growth while maintaining guardrails, particularly around fraud, custody, and disclosure. Firms can expect more transparency around what’s permissible, and more emphasis on proactive risk mitigation than reactionary penalties.
Key changes from the new SEC Crypto Task Force
The dissolution of the enforcement unit (Crypto Assets and Cyber Unit) doesn’t mean enforcement isn’t off the table. Fraud-based actions will continue, and firms must ensure any crypto-related activity is tightly supervised, documented, and risk-assessed. With this new direction, firms should recognize that:
- Previously issued guidance that hindered crypto custody has been rescinded, enabling traditional firms to reassess digital asset strategies
- It has been clarified how crypto fits into broker-dealer obligations (e.g., Rule 15c3-3 and net capital treatment)
- The SEC has held five industry roundtables focused on staking, custody, decentralized finance (DeFi), and tokenization — inviting firms to weigh in
- Nearly all pending SEC enforcement cases against crypto firms from the prior administration have been dismissed
"It’s a whole new world in crypto in the U.S.… [President] Trump is trying to live up to his promise to make the U.S. the crypto capital of the world."
What’s next for SEC crypto regulation in 2025
With crypto continuing to get regulatory attention, firms should:
- Expect formal rule proposals on crypto custody, issuance, and trading coming soon
- Continue to evaluate disclosure and investor protections even if staking protocols may be treated more permissively
- Proactively reassess their crypto exposure and prepare to align with more nuanced, risk-based regulatory frameworks
- State-level oversight or congressional action may fill gaps as federal rulemaking evolves
How Smarsh supports crypto regulatory readiness
The SEC’s new posture toward crypto reflects a broader shift from reaction to regulation — a recognition that innovation and oversight don’t have to be at odds. But even as the tone becomes more constructive, the expectations for governance, supervision, and documentation are rising.
For firms engaging with digital assets, this is both a moment of opportunity and a test of readiness. The absence of enforcement does not mean the absence of scrutiny. Success in this next chapter will depend on having the systems and processes in place to demonstrate control across communications, risk assessments, and operational workflows, even as the rules continue to take shape.
At Smarsh, we’re seeing forward-looking firms embrace this moment to rethink how their compliance infrastructure can scale with new asset classes and regulatory demands. Because in crypto, as in all things regulatory, transparency and adaptability aren’t just safeguards. They’re strategic advantages.
"We don’t expect to see standalone [recordkeeping] cases... but we do expect them to bring some where there are other violations."
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