The U.S. Securities and Exchange Commission (SEC) is altering its approach to crypto regulation, reducing the Crypto Assets and Cyber Unit.
New Appointments and Structure at SEC
Sources report that lawyers are being reassigned to other divisions, with at least one senior lawyer moving out of the enforcement division entirely. This move aligns with the Trump administration’s efforts to ease crypto regulations. Acting SEC Chairman Mark Uyeda has set up a task force, led by Hester Peirce, to review digital asset regulations.
Changes in Investigation Processes
The SEC introduces a new policy requiring commissioner approval before launching formal investigations. Previously, staff had the autonomy to issue subpoenas and compel testimony. This change aims to ensure that investigations are supported and evidence-based, though critics worry about slowing enforcement actions.
New Direction in Crypto Policy
SEC Commissioner Hester Peirce welcomes the new reforms, criticizing the previous enforcement-driven approach. Her task force will focus on clarifying digital asset security classifications, simplifying registration for crypto products, and improving clarity for staking and custodial services.
The changes at the SEC potentially impact the crypto industry, shifting focus from strict enforcement to regulatory clarification.
