The U.S. Securities and Exchange Commission (SEC) is downsizing its Crypto Assets and Cyber Unit, reflecting a new regulatory approach in the digital asset industry.
Investigation Requirements
As part of the policy shift, the SEC has introduced a new requirement for staff to obtain commissioner approval before launching formal investigations. This move aims to ensure investigations are well-supported but has faced criticism for potentially slowing down processes.
Hester Peirce's Reform Agenda
SEC Commissioner Hester Peirce, a longstanding advocate for crypto-friendly reforms, supports the SEC's new direction. Her task force focuses on clarifying digital assets as securities, simplifying the registration process for crypto products, and improving regulatory clarity for services like staking and lending.
Impact on Pending Cases and Industry
The SEC restructuring raises questions about the fate of pending cases like the lawsuit against Coinbase. The crypto industry has long criticized regulatory uncertainty, and this shift may indicate a more balanced approach going forward.
The SEC's reforms under acting Chair Mark Uyeda and support from President Donald Trump promise a more favorable environment for cryptocurrency growth and reduced administrative pressure.
