SEC announces 2027 examination priorities focusing on tokenization

The US Securities and Exchange Commission (SEC) has released its Fiscal Year 2027 examination priorities, identifying tokenized securities as a high-risk area for closer scrutiny. The Division of Examinations included tokenization alongside emerging technologies such as artificial intelligence (referred to in the document as 'super intelligence') and quantum computing.

In addition to technological trends, the SEC will focus on market infrastructure, specifically examining clearing agencies and Regulation Systems Compliance and Integrity (SCI). The priorities also highlight several areas of ongoing concern, including private credit, private fund valuations, and the use of debt or fund-level lines of credit.

Regarding fiduciary duties, examiners will investigate economic conflicts of interest, such as fee rebates, cash management, and indirect compensation. The report also notes a focus on how investment advisers manage third-party relationships, including proxy advisory firms and the adequacy of controls when outsourcing data access. These priorities serve as guidance for examiners to assess compliance with existing laws rather than establishing new legal obligations.