The U.S. Securities and Exchange Commission (SEC) is downsizing its Crypto Assets and Cyber Unit as part of efforts to simplify regulations under its current leadership.
SEC Requires Approval for Investigations
Part of the regulatory shift includes implementing a policy requiring commissioner approval before initiating formal investigations. This is to ensure investigations are reliable and evidence-based. However, critics argue it might slow down the process, allowing fraudsters more time to operate.
Hester Peirce's Push for Crypto Reforms
SEC Commissioner Hester Peirce supports the commission's new direction, emphasizing a crypto-friendly regulatory shift and proposing several reforms.
Impact on Pending Cases and Crypto Industry
The SEC's restructuring raises questions about the fate of pending cases, including the lawsuit against Coinbase. The industry's criticism of the regulatory uncertainty may have prompted this change in approach.
The downsizing of the SEC's Crypto Assets unit may slow enforcement actions and pave the way for clearer regulatory norms in line with the Trump administration's vision.
