Crypto Oversight Battle Heats Up Amid SEC Retreat

The U.S. Securities and Exchange Commission (SEC) has excluded cryptocurrency from its list of examination priorities for 2026, a notable change from previous years when digital assets were a primary concern.

on crypto in its most recent priorities outline. This adjustment reflects wider regulatory and political shifts during President Donald Trump’s administration, who in the digital asset industry.

This omission stands in stark contrast to the SEC’s 2023 and 2024 agendas, which directly referenced crypto assets, spot

and ETFs, as well as new technologies like blockchain. Under Chair Gary Gensler last year, the agency prioritized oversight of crypto-related offerings due to concerns over market instability and regulatory challenges. Now, the 2026 agenda as an effort to foster "productive conversations" with industry participants, emphasizing that examinations should not be a "trap." including fiduciary responsibilities, safeguarding of client assets, and risks associated with artificial intelligence and automated investment platforms.

would broaden the CFTC’s role in overseeing "digital commodities," requiring exchanges to keep customer assets separate and implement capital requirements similar to those in traditional commodity markets. At the same time, would give the SEC oversight of "ancillary assets," which blur the line between securities and commodities, and create a process for tokens to move out of securities classification as they become more decentralized. to provide clearer rules for a sector long troubled by regulatory uncertainty, though questions remain about overlapping authorities and enforcement strategies.

, which combines aspects of both Senate proposals, could transform exchange operations, enforce tougher anti-manipulation standards, and require platforms dealing in both securities and commodities to register with both regulators. Experts such as Jeff Park believe that CFTC-led oversight is "the right direction," since its background in derivatives and commodities fits well with crypto’s similarities to assets like oil or gold.

Although the SEC insists it is not completely stepping away from crypto,

a deliberate shift toward "core priorities" like strengthening cybersecurity and addressing AI-related risks. The agency stated it may still review crypto activities "when necessary," but has left industry observers uncertain about future regulatory actions. This uncertainty is heightened by under the OECD’s Crypto-Asset Reporting Framework (CARF), which is currently under review by the White House.

The regulatory environment continues to evolve as lawmakers and agencies debate different approaches to crypto oversight. With the CFTC and SEC competing for jurisdiction and legislative outcomes still unclear, the industry faces a pivotal moment. The decisions made will influence not only compliance standards but also the sector’s future growth, investor safety, and potential for innovation in the coming years.