According to the SEC’s recent announcement, crypto brokers and registered advisers should probably watch this year when giving advice.

Crypto brokers and investment advisors who advise on or provide cryptocurrencies will come under the control of the US securities regulator this year.

A Feb. 7 report from the Securities and Exchange Commission’s (SEC) Examinations Division outlining the outlook for 2023 suggests that brokers and advisers selling crypto stocks need to be extra cautious when offering, selling or advised make from digital assets.

It will scrutinize SEC-registered brokers and advisers to ensure they adhere to “other standards of care” when providing advice, referrals and investment advice.

The SEC will also ensure that these entities “routinely” review and update their procedures to meet “compliance, disclosure and risk management requirements.”

This announcement is similar to the SEC’s priorities released in 2022, but it appears this year the regulator is increasingly tightening standards of care and practices by brokers rather than monitoring unique risks such as “emerging financial technologies” in 2022 that are significantly’ very slowly.

The latest announcement comes nearly two weeks after a report that the SEC is investigating registered investment advisers who may be providing custody of digital assets to clients without proper qualifications.

Related: SEC Releases Crypto Miners Reports During Investigation: Report

The SEC investigation is reportedly ongoing for several months, but now tops its priority list after the collapse of crypto exchange FTX, Reuters reports.

Under the law, investment advisory firms must be qualified to provide custodial services to clients and implement custody measures as set out in the Investment Advisers Act of 1940.

Source: CoinTelegraph