WASHINGTON—In a move signaling a potential thaw in the regulatory chill that has long shadowed the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has notably omitted crypto asset services from its list of examination priorities for fiscal year 2026. This shift, detailed in the agency’s annual announcement released on November 18, 2025, marks the first time in years that digital assets have not been highlighted as a key focus area for oversight. Instead, the SEC is redirecting its gaze toward emerging risks in artificial intelligence, cybersecurity, and the burgeoning private credit market, which some experts warn could echo the 2008 financial crisis.

The decision comes amid a broader policy realignment under the incoming administration of President-elect Donald Trump, who has voiced strong support for the crypto sector. According to a report by Reuters, the SEC’s Division of Examinations stated it would prioritize fiduciary duties, standards of conduct, and compliance with new rules, while de-emphasizing crypto-specific audits. This has been interpreted by industry players as a welcome relief, potentially fostering innovation in a space that has faced aggressive enforcement under former Chair Gary Gensler.

Market reaction was swift: Bitcoin prices bounced nearly 2% in the hours following the announcement, climbing from around $90,000 to above $92,000, as per data from CoinDesk. However, the memo also sounded alarms about the $1.7 trillion private credit sector, drawing parallels to pre-2008 subprime mortgage risks. ‘Examinations are an important component to accomplishing the agency’s mission, but they should not be a ’gotcha’ exercise,’ said SEC Chairman Paul Atkins in the announcement, as quoted by Investing.com.

A Regulatory Reset Under New Leadership

The omission of crypto from the 2026 priorities list represents a stark departure from previous years. Under Gensler, the SEC had ramped up scrutiny, launching numerous enforcement actions against major players like Binance and Coinbase for alleged securities violations. The 2025 priorities, in contrast, had explicitly flagged crypto assets as high-risk, emphasizing the need for robust compliance in areas like custody and valuation.

Now, with Atkins at the helm—appointed by Trump and known for his pro-innovation stance—the agency appears to be normalizing crypto’s place in the financial ecosystem. ‘SEC’s 2026 priorities drop crypto for the first time in years, signaling a shift toward normalization under Trump’s pro-crypto policies,’ noted a report from Coinpedia. This pivot aligns with broader Republican efforts to create a more favorable regulatory environment, including proposals for a national Bitcoin reserve.

Industry insiders view this as more than symbolic. ‘The SEC is shifting its focus to conduct, custody, and data rules under the Trump administration,’ according to The Market Periodical. Crypto firms, long burdened by the threat of surprise audits, may now redirect resources toward growth rather than defensive compliance. Yet, the agency cautioned that the list is not exhaustive, with a spokesperson telling Reuters that examiners could still probe crypto-related activities if risks emerge.

AI Emerges as the New Frontier of Risk

As crypto steps back, artificial intelligence is stepping into the spotlight. The SEC’s 2026 priorities explicitly highlight AI and automation as areas of heightened concern, particularly in how they intersect with investment advice and trading practices. Regulators worry that AI-driven tools could amplify market volatility or enable manipulative practices, such as algorithmic trading gone awry.

‘U.S. regulators removed crypto from their 2026 examination priorities, marking a stark policy shift from the previous administration,’ reported Crypto.news, noting the emphasis on AI and cybersecurity. This focus comes amid rapid AI adoption on Wall Street, where firms like Goldman Sachs and JPMorgan are deploying machine learning for everything from fraud detection to portfolio management.

Experts point to potential pitfalls: biased algorithms could lead to discriminatory lending, or AI-fueled high-frequency trading might exacerbate flash crashes. ‘The SEC’s examinations division will focus on cybersecurity, artificial intelligence, and compliance with new rules in 2026, but not cryptocurrency,’ as detailed by Pensions & Investments. Chairman Atkins has emphasized a ‘constructive dialogue’ approach, aiming to balance innovation with investor protection.

Echoes of Crisis in Private Credit

Amid the crypto reprieve, the SEC’s memo raises red flags about the private credit market, a $1.7 trillion behemoth that has ballooned in recent years. Often compared to the subprime mortgage bubble, private credit involves non-bank lenders providing loans to companies outside traditional banking channels, frequently with less transparency and higher risks.

‘The regulator’s main focus has shifted to AI technology and automation,’ but also to private markets, per a post on X from user Tom Riddle, reflecting sentiment on the platform where discussions highlight potential ‘bubbles about to burst.’ A report from Yahoo Finance echoes this, noting the SEC’s intent to scrutinize fiduciary duties in these opaque sectors.

Analysts warn that rising interest rates could trigger defaults, with leveraged loans mirroring the toxic assets of 2008. ‘SEC excludes crypto from its 2026 examination priorities, focusing instead on fiduciary duties, cybersecurity, and new technologies,’ according to CoinCentral. This scrutiny could lead to tighter regulations, potentially cooling the private credit boom that has fueled corporate debt in a post-pandemic economy.

Market Implications and Bitcoin’s Bounce

The immediate market response underscores crypto’s sensitivity to regulatory winds. Bitcoin’s 2% uptick post-announcement reflects investor optimism, but it’s tempered by broader market jitters. Posts on X, such as one from Crypto Guru, speculate on ‘market manipulation’ and ‘supply flushes’ amid uncertainty, with Bitcoin dipping due to macro factors like treasury bond discussions.

‘Crypto removed from 2026 examination priorities,’ as per Bitcoin Ethereum News, has fueled speculation of a parabolic run. Yet, historical data from X user Wise Advice shows Bitcoin’s seasonal patterns, with strong returns from October to April, suggesting the current dip might be a buying opportunity.

Longer-term, this regulatory easing could attract institutional capital. A post on X from ZualaCapital notes that a new regime might make tokens more valuable, with Bitcoin potentially becoming a U.S. strategic reserve asset. However, risks remain: ‘For those projects that operate in the legal gray area, the risks remain the same,’ warned an X user Powerdrill Bloom.

Broader Policy Shifts and Future Outlook

The SEC’s pivot is part of a larger narrative under Trump 2.0. Proposals for clearer token classification, as discussed in an X post from VirtualBacon, could reduce lawsuits and classify more assets as commodities, benefiting established cryptos like Bitcoin and Ethereum.

‘The SEC excludes cryptocurrencies from its 2026 examination priorities, signaling a shift toward regulatory normalization under Trump’s leadership,’ reported Crypto Economy. This could pave the way for mainstream adoption, including Bitcoin-backed mortgages, though volatility concerns persist, as highlighted in an X post from PurposefulRedemption.

As the agency balances innovation with oversight, industry watchers will monitor how this plays out. ‘SEC has removed cryptocurrency from its inspection priorities for 2026,’ per X user Intern Labs, noting the focus on private markets and AI. While crypto breathes easier, the spotlight on new risks ensures Wall Street’s evolution remains under watchful eyes.