SEC adds AI superintelligence and tokenization to FY2027 examination priorities

The SEC's Division of Examinations published an eight-point set of FY2027 examination priorities on Thursday, identifying AI superintelligence and tokenization as systemic market risks. The priorities explicitly identify "super intelligence and other advanced technologies" for heightened scrutiny for the first time. The technology focus covers potential effects on market functioning, regulatory compliance, fraud prevention and protection for investors.

The priorities place AI within an emerging-technologies category. That category signals intended scrutiny of how registrants use AI in compliance programs and fraud detection. Earlier editions addressed AI primarily as a tool that investment advisers were adopting. However, the FY2027 priorities treat AI as a factor affecting markets systemically.

The Division also identified tokenization within a separate market-infrastructure priority, together with Treasury clearing reforms and related changes. Brokers, investment advisers and transfer agents developing tokenized products amid regulatory easing under Paul Atkins will now face examination scrutiny of compliance programs, beyond policy attention.

Division Director Keith Cassidy said the approach allows the Division to adjust to market changes, detect developing risks and respond to new threats. Cassidy said the approach also helps the Division anticipate vulnerabilities affecting investors and markets. The Division said the priorities are not exhaustive. Examiners retain discretion to examine other matters involving federal securities law compliance throughout the registrant population.

The FY2026 priorities, published in November 2025, omitted cryptocurrency as a separate examination focus for the first time since 2021. That omission signaled a retreat by the SEC under Paul Atkins from the enforcement approach under Gary Gensler. The FY2027 priorities do not reinstate a separate cryptocurrency section. However, the priorities incorporate AI risks and tokenization, the technology trends with the greatest influence on capital markets activity over the past year.

The Division's examination program now encompasses more than 34,000 registrants. The population includes investment advisers, investment companies, broker-dealers, clearing agencies and transfer agents.