The U.S. Securities and Exchange Commission (SEC) is downsizing its Crypto Assets Unit. This decision aligns with the Trump administration’s efforts to ease cryptocurrency regulations and promote innovation.
Changes in the SEC and New Policy
The SEC introduces a new policy requiring commissioner approval before launching investigations. This ensures investigations are well-founded but may slow enforcement actions.
Hester Peirce's Reform Initiatives
SEC Commissioner Hester Peirce supports the SEC's new direction, criticizing the previous strict approach. Her task force aims to clarify whether digital assets are securities and simplify crypto product registration.
Impact on Pending Cases and the Crypto Industry
The SEC's restructuring raises questions about the fate of pending cases, including the lawsuit against Coinbase. A slowdown in enforcement may signal a shift towards a more measured regulatory approach.
The downsizing of the SEC's Crypto Assets Unit and new initiatives could significantly change the approach to cryptocurrency regulation in the U.S., offering a more balanced mix of oversight and innovation encouragement.
