SEC puts tokenization risks on its fiscal 2027 examination list

The U.S. Securities and Exchange Commission has included tokenization risks in its fiscal 2027 examination priorities, setting out areas of scrutiny across a program covering more than 34,000 registrants. Summary The SEC has included tokenization risks in its fiscal 2027 examination priorities. Clearing agencies and entities covered by Regulation SCI face explicit tokenization reviews. The priorities create no new legal obligations or changes to existing securities laws. Broker-dealer examinations will cover trading practices, supervision, financial responsibility and AML compliance. The SEC announced the priorities on Oct. 23, identifying evolving market infrastructure as a risk area alongside investor protection, private credit, cybersecurity and emerging technologies. Its examination program covers investment advisers, investment companies, broker-dealers, clearing agencies, transfer agents and other regulated businesses. “Risks associated with evolving market infrastructure, including Treasury clearing reforms, tokenization, and related developments,” the release states. The agency said examination observations, market developments, investor concerns and industry engagement inf...