The US Securities and Exchange Commission (SEC) has begun scaling back its crypto unit as part of shifts initiated by President Trump's administration.
Changes in the SEC Crypto Division
According to a New York Times report, the SEC is scaling back the number of employees in its crypto unit, with some team members reassigned. This aligns with the Trump administration's efforts to ease regulations and secure US leadership in the digital asset economy.
Reactions to SEC Changes
Some experts interpret the changes as a move to remove 'speed limits' on the crypto market. Corey Frayer, a former senior adviser to Gary Gensler, criticized the changes as potentially harmful to capital markets: 'What the new SEC leadership proposes to do for crypto is remove the speed limits and guardrails that have made our capital markets the strongest in the world.'
Future of Crypto Regulation
Acting SEC Chair Mark Uyeda has already formed a task force to review crypto rules. Paul Atkins, nominated by Trump to lead the SEC and known for advocating lighter regulation, may influence further changes in the sector. Under his leadership, the SEC might drop cases not involving financial fraud.
While the SEC's changes may reduce crypto regulations, the long-term impact on the market and investor safety remains uncertain.
