The U.S. Securities and Exchange Commission (SEC) has announced a downsizing of its Crypto Assets and Cyber Unit, aligning with a shift in cryptocurrency regulation policies.
SEC's Crypto Division Changes
Following the resignation of former Chair Gary Gensler, SEC has begun reallocating lawyers from the crypto unit to other divisions. This move aligns with the Trump administration's efforts to reduce crypto regulation. Acting SEC Chair Mark Uyeda has established a task force led by Commissioner Hester Peirce to review digital asset regulations.
New SEC Investigation Policies
The SEC has implemented a new policy requiring commissioner approval before initiating formal investigations. Previously, staff had the autonomy to issue subpoenas and compel testimony. This change aims to ensure investigations are well-supported, though critics argue it may slow down enforcement.
Hester Peirce's Reforms and Strategy
SEC Commissioner Hester Peirce has welcomed the SEC's new direction and criticized the previous enforcement-centric approach. Peirce's task force will focus on clarifying the status of digital assets as securities and simplifying crypto product registration.
The downsizing and policy review at the SEC may indicate a more balanced approach to crypto regulation, welcomed by the industry and innovation proponents.
