The SEC is making changes to its crypto unit, reallocating some staff and updating its approach to crypto regulation.
SEC's Crypto Unit Downsizing
According to the New York Times, the SEC is beginning to scale back its crypto unit. Some employees from the 50-staff unit will be reassigned to other departments within the agency. These changes also led to the removal of one of the unit’s top lawyers from the SEC’s enforcement arm.
New Regulatory Approach by SEC
SEC Commissioner Hester Peirce outlined the agency's new approach to crypto space regulation. Part of the new approach will involve evaluating the security status of digital assets, which could potentially offer retroactive relief for some token offerings.
Opinions on SEC's New Strategy
Corey Frayer, a former senior advisor to Gary Gensler, states that the new SEC leadership is removing the 'speed limits and guardrails' that have made capital markets the strongest in the world. In 2024, under Gensler, the agency conducted 33 crypto-related enforcement actions against 90 defendants and respondents.
The changes in the SEC's strategy could significantly impact the development and regulation of the cryptocurrency market in the future.
