The U.S. Securities and Exchange Commission (SEC) is scaling back its dedicated crypto enforcement unit, marking a shift in policy under Donald Trump's administration.
Regulatory Changes
The reduction of the SEC's crypto division is part of Donald Trump's administration's policy to ease cryptocurrency regulations. Some members of the unit have been reassigned, while a senior lawyer has already left the department. During the 2024 campaign, Trump shifted his stance, aligning with the crypto industry, which viewed former SEC Chair Gary Gensler as its main adversary.
New Leadership at SEC
SEC's acting chair, Mark Uyeda, known for his crypto-friendly stance, has made several appointments and reorganized leadership. Under Commissioner Hester Peirce, a longtime crypto advocate, a task force was established to reassess the SEC’s digital asset policies.
Reversal of Past Initiatives
One of the new administration's first actions was the rescission of the controversial accounting rule known as Staff Accounting Bulletin No. 121. This rule required companies to report crypto holdings on their balance sheets, increasing compliance costs. Hester Peirce celebrated its repeal, stating on social media: 'Bye, bye SAB 121! It's not been fun.'
The changes at the SEC demonstrate a significant shift in the approach to cryptocurrency regulation by the Trump administration, aimed at fostering innovation and eliminating regulatory excess.
