The Securities and Exchange Commission is scaling back its efforts to regulate cryptocurrency, with some lawyers from a special unit being reassigned or demoted. The move is part of President Trump’s administration effort to loosen regulations on digital assets.
In 2017, the S.E.C. created a team of over 50 lawyers and staff to oversee cryptocurrency enforcement. However, under the new leadership, the agency is now reducing its focus on crypto regulation. One of the unit’s top lawyers was recently reassigned out of the enforcement division, with some describing it as an unfair demotion.
The S.E.C.’s new chair, Mark T. Uyeda, has been supportive of the crypto industry and made several appointments aimed at reviewing the agency’s approach to digital assets. Commissioner Hester Peirce led a task force that published a position paper criticizing the commission’s handling of crypto regulation, calling it “legal imprecision” and “commercial impracticality.”
The downsizing of the crypto unit has raised concerns about its impact on pending enforcement actions, including a high-profile case against Coinbase. The agency’s new stance may allow cryptocurrency to become more vulnerable to fraudsters, according to critics.
President Trump’s administration has taken steps to promote the growth of cryptocurrencies and reduce regulatory oversight. The S.E.C.’s crypto enforcement unit was created during the first Trump administration and expanded significantly under former Chairman Gary Gensler. Mr. Trump has nominated Paul Atkins, a lawyer with ties to the crypto industry, to succeed Mr. Gensler, who has been critical of his handling of cryptocurrency regulation.
Source: https://www.nytimes.com/2025/02/04/business/sec-crypto-task-force.html