The SEC’s crypto unit, which expanded under its former chair, is now being scaled back.
The U.S. Securities and Exchange Commission is reportedly scaling back its crypto enforcement unit as the Trump administration is set to ease regulations. According to a New York Times report, which cites sources close to the matter, some team members are being reassigned. One top lawyer was moved out of the enforcement division, which some see as a demotion.
The move is part of a broader shift under President Donald Trump. One of his first executive orders called for “eliminating regulatory overreach” on crypto in an effort to “secure America’s position as the world’s leader in the digital asset economy.”
Acting SEC Chair Mark Uyeda, a Republican, has already formed a task force to review crypto rules. He also appointed SEC Commissioner Hester Peirce, a known crypto supporter, to lead it. However, some view the latest changes as a move to remove the “speed limits and guardrails” that have shaped the SEC’s approach to crypto.
Corey Frayer, a former senior adviser to Gensler, criticized the changes, saying “What the new SEC leadership proposes to do for crypto is remove the speed limits and guardrails that have made our capital markets the strongest in the world.”
In the meantime, Trump has nominated Paul Atkins, a longtime advocate for lighter regulations, to lead the SEC. His confirmation hearing is still pending though.
During his campaign, Trump vowed to end sweeping crypto crackdowns, and reports suggest the SEC may dismiss certain digital asset-related litigations that do not involve financial fraud.
As crypto.news reported earlier, the “SEC 2.0” appears to be charting a course long suggested by the crypto industry, one focused on clarifying regulatory oversight and establishing guidelines for cryptocurrencies and digital assets.
Read the full article here