The U.S. Securities and Exchange Commission (SEC) has begun downsizing its cryptocurrency enforcement unit. The move is part of a restructuring effort led by Trump's administration.
Changes within SEC Structure
The SEC has started reducing its cryptocurrency enforcement team, initially staffed with over 50 personnel. Some members have been reassigned to other SEC divisions, while a notable lawyer has been moved to a new position, perceived as a demotion. The SEC chose not to comment on its restructuring.
Trump Administration's New Stance
During the 2024 election campaign, Donald Trump shifted his stance on cryptocurrencies, receiving support from the crypto community. Acting SEC Chair Mark T. Uyeda has shown a crypto-friendly attitude and made leadership changes within the agency. SEC Commissioner Hester Peirce now leads a team to reassess the SEC's approach to digital assets.
Uncertainty in Crypto Regulation
It's uncertain how the downsizing will affect ongoing enforcement actions, including a high-profile case against Coinbase. The SEC accuses Coinbase of violating federal securities laws. Since the creation of the crypto unit, over a hundred enforcement actions have been undertaken against fraudulent and unregistered offerings. Nominee Paul Atkins awaits Senate confirmation as SEC Chair, advocating for a less stringent regime.
The SEC's structural changes might represent a turning point for the crypto industry. The impact on future regulations remains uncertain.
