SEC to focus on AI, private assets and tokenized securities in 2027 Wall Street examinations

On October 23, 2026, the U.S. Securities and Exchange Commission published its fiscal year 2027 examination priorities, focusing oversight on private assets, tokenized securities, and artificial intelligence across 34,000 registrants. Adopting 'super intelligence' terminology under President Trump's Executive Order 14434, the agency will evaluate AI compliance risks and tokenization market infrastructure while facing pushback from 22 corporate issuers against tokenized stock offerings.

SEC fiscal year 2027 examination priorities

• ▪The SEC listed quantum computing alongside tokenization and extended trading hours as emerging trends under Regulation Systems Compliance and Integrity in its FY2027 priorities report.
• ▪The SEC Division of Examinations inspects SEC-regulated entities including investment advisers, broker-dealers, clearing agencies, and stock exchanges, and can refer findings of wrongdoing to the enforcement division.
• ▪The SEC FY2027 examination priorities program covers core focus areas including investment advisers' fiduciary duties, retail investor protection on complex products, private funds and private credit, broker-dealer financial responsibility, and anti-money laundering compliance.
• ▪On October 23, 2026, the U.S. Securities and Exchange Commission Division of Examinations published its examination priorities for fiscal year 2027, covering more than 34,000 registrants.
• ▪SEC Division of Examinations Director Keith Cassidy stated that the 2027 examination priorities enable the agency to adapt to changing market conditions and respond to emerging threats.

Adoption and oversight of super intelligence

• ▪The SEC's adoption of the 'super intelligence' terminology follows President Trump's Executive Order 14434, signed on September 29, 2026, which directs federal agencies to use 'Super Intelligence' instead of 'Artificial Intelligence'.
• ▪The SEC established a Super Intelligent Task Force in August 2025 and appointed Valerie Szczepanik as Chief SI Officer responsible for SI innovation, adoption, and governance.
• ▪SEC examiners will evaluate how firms deploy advanced AI systems for investment advice, automated trading algorithms, cybersecurity defenses, and protection against deepfake audio and video cyberattacks.
• ▪In its fiscal year 2027 examination priorities report, the SEC adopted the term 'super intelligence' or 'SI' in place of 'artificial intelligence' under information security and operational resiliency.

Expansion and examination of private funds

• ▪The Trump administration moved to expand access to private funds and private credit for retirement savers and 401(k) plan participants.
• ▪The SEC selected private assets, private funds, and private credit as primary focus areas for fiscal year 2027 examinations due to concerns over valuation methods, fees, and liquidity risks for everyday investors.

SEC examination of tokenized market infrastructure

• ▪The SEC added tokenization to its fiscal year 2027 examination priorities under evolving market infrastructure risks alongside Treasury clearing reforms.
• ▪SEC examiners will scrutinize tokenized securities at clearing agencies across high-risk operational areas including default management, securities lending, recordkeeping, and clearing compliance.

SEC approvals for tokenized securities

• ▪On September 17, 2026, the SEC granted qualifying Tokenized Securities Venues a five-year conditional exemption from certain Exchange Act requirements to facilitate trading of tokenized U.S. stock.
• ▪In March 2026, the SEC approved a rule change allowing Nasdaq to trade securities in tokenized form.

Corporate objections to tokenized stock platform OKXICE

• ▪OKX and Intercontinental Exchange filed with the SEC to launch a joint platform aiming to offer tokenized versions of shares in 63 U.S.-listed companies under the SEC's innovation exemption.
• ▪Under the SEC's innovation exemption rules, trading platforms must notify companies before listing tokenized versions of their shares and are barred from listing if an issuer objects.
• ▪Twenty-two companies, including Wells Fargo, Arm Holdings, and Intuit, filed formal objections to having their shares tokenized on OKXICE, a joint trading platform backed by OKX and Intercontinental Exchange.

SEC cryptocurrency regulatory approach

• ▪Cryptocurrency was omitted as a standalone examination priority in the SEC's fiscal year 2027 priorities report for the second consecutive year.
• ▪On September 30, 2026, SEC Chairman Paul Atkins announced plans to develop rules for on-chain fundraising after Congress failed to pass a crypto market-structure statute.