What is the Securities and Exchange Commission of the USA (SEC): the key regulator of the cryptocurrency market

History and Structure of SEC

The U.S. Securities and Exchange Commission (SEC) was established in 1934 and is one of the most important financial regulators in the United States. After the Dodd-Frank Act was passed in 2010, the SEC's jurisdiction significantly expanded to cover broker-dealers, investment companies, advisors, and clearing agencies.

The organizational structure of the SEC includes five commissioners appointed by the President of the United States with the consent of the Senate. The commission is divided into several specialized divisions:

• Law Enforcement Department
• Corporate Finance Department
• Department of Economic Analysis and Risks
• Inspection and Verification Department
• Trading and Markets Department
• Investment Management Department

Main Objectives of the Regulator

SEC performs three fundamental tasks in the financial system of the USA:

1. Investor Protection — ensuring access to accurate information about securities and protection against fraud and market manipulation.

2. Maintaining Fair Markets — regulating the operations of exchanges, brokers, and dealers to ensure fair and efficient trading.

3. Facilitating Capital Formation — oversight of the issuance of new securities and control of compliance with regulatory requirements when raising funds.

SEC and cryptocurrency regulation

The role of the SEC in the cryptocurrency industry is becoming increasingly significant. The commission's leadership has repeatedly stated that many crypto assets fall under the definition of securities. In recent years, the regulator:

• Initiated numerous investigations into cryptocurrency projects
• Started regulating the activities of cryptocurrency exchanges
• Controlled the issuance of tokens and ICO
• Took measures against violators of securities legislation in the crypto sphere

Historic Approval of Bitcoin ETF

In early 2024, the SEC made a landmark decision, approving the first group of spot Bitcoin ETFs. The approved funds included 11 exchange-traded products from major financial companies, including BlackRock and Fidelity.

This decision has become a turning point for the industry, as:

• Opened access to Bitcoin for institutional and retail investors through traditional investment instruments.
• Led to a multibillion-dollar influx of capital into the cryptocurrency sector
• Contributed to greater legitimization of digital assets

Current Position on Ethereum ETF

Despite the approval of spot Bitcoin ETFs, as of September 2025, the SEC has not approved any spot ETFs based on Ethereum. This reflects a more complex approach by the regulator towards altcoins compared to Bitcoin.

Latest SEC regulatory initiatives

As of September 2025, the SEC continues to actively develop the regulatory framework for financial markets:

• The deadline for compliance with the PF Form requirements has been extended to October 1, 2026.
• Public consultations have been launched to improve the rules for mortgage-backed securities.
• Regulators are investigating suspicious stock movements of companies ahead of announcements regarding funding plans for cryptocurrency projects.

These initiatives indicate the SEC's ongoing focus on ensuring transparency and protecting investors in both traditional and cryptocurrency markets.