The Securities and Exchange Commission's Division of Examinations has identified tokenized securities, artificial intelligence and quantum computing as emerging priorities for its fiscal year 2027 examinations, according to the agency's newly released priorities report.
The technologies will inform oversight of regulated financial institutions, including clearing agencies, securities exchanges, broker-dealers and investment advisers.
Tokenization appears in two sections
Tokenization, which represents traditional assets such as stocks and bonds as digital tokens on blockchain networks, is cited in two separate parts of the report. Under clearing agency priorities, the SEC said examinations will focus on high-risk areas including default management, securities lending, operational controls and tokenization.
Clearing agencies process and settle securities transactions, making their technological reliability important to market stability. The regulator also named tokenized securities as an emerging concern under Regulation Systems Compliance and Integrity, which sets operational resilience and technology safeguards for certain key market participants.
"Examinations under Regulation SCI will focus on emerging trends, including [AI], tokenization of securities, extended trading hours, and quantum computing," the report states.
The SEC did not outline specific new requirements for tokenized assets and did not establish separate examination priorities for cryptocurrencies, stablecoins or decentralized finance.
AI receives broader attention
Artificial intelligence received substantially more attention in the report, though the SEC repeatedly referred to the technology as "super intelligence," or SI. The regulator acknowledged that financial institutions are increasingly using advanced AI systems for investment analysis, portfolio management, customer communications, software development and regulatory compliance.
"As these capabilities grow more sophisticated and embedded in daily business processes, the division is intensifying its efforts to understand how the technologies influence outcomes," the report states.
The SEC also warned that malicious actors are using advanced AI to conduct increasingly sophisticated cyberattacks, including automated phishing campaigns and deepfake audio and video intended to deceive employees and customers. Examiners will assess whether institutions have adequately prepared for those threats and implemented safeguards against identity theft, account takeovers and fraudulent transactions.
The agency plans to scrutinize AI-powered trading algorithms and automated investment advice, particularly whether firms accurately describe their technologies and deliver recommendations consistent with investors' financial objectives and risk profiles. AI applications supporting fraud detection, anti-money laundering compliance and back-office operations will also face examination.
Meanwhile, the SEC said it is incorporating advanced AI into its own examination processes to improve efficiency, identify patterns and assess risks, while maintaining human oversight.
Quantum computing flagged under Regulation SCI
Quantum computing also received explicit recognition as an emerging technology under Regulation SCI, although the SEC provided little detail about its specific concerns. The inclusion comes as advances in quantum computing raise questions about the long-term security of cryptographic systems underpinning financial infrastructure.
The SEC did not directly connect quantum computing to cryptocurrency security or announce specific post-quantum requirements.
Beyond emerging technologies, the report emphasizes cybersecurity, third-party vendor oversight, investor protections and coordination with other regulators, including the Commodity Futures Trading Commission. The document outlines examination priorities rather than new regulations.
