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The US Securities and Exchange Commission (SEC) is reportedly reducing the size of its crypto enforcement division, which consists of over 50 attorneys and staff members. According to a report by the New York Times, these individuals are being reassigned to various departments within the SEC, as noted by sources.
The unnamed sources indicated that one of the senior attorneys has transitioned out of the crypto enforcement team. Some members characterized the reorganization as “an unjust demotion.”
This specific unit was established to address the challenges associated with the criminal misuse of cryptocurrencies. The team includes attorneys from various divisions, featuring prosecutors with expertise in cryptocurrency, cybercrime, and money laundering.
This reduction signifies a notable change in crypto regulation under President Trump’s administration. It follows the President’s executive order aimed at eliminating “regulatory overreach” concerning crypto assets.
The current acting chair of the SEC, Mark Uyeda, has made several appointments, forming a task force to develop crypto guidelines. This task force is led by SEC commissioner and pro-crypto advocate Hester Peirce. Additionally, the team has gathered skilled personnel from across the agency to work collaboratively with SEC staff and the public.
Hester Peirce Outlines Initial Priority List of SEC Crypto Task Force
The SEC’s reduction comes shortly after Commissioner Hester Peirce outlined a series of the regulator’s initial plans for crypto regulation. This includes assessing crypto’s classification as either a security or a commodity and offering “temporary potential and retroactive relief” for token offerings.
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“The crypto journey on which the newly formed Crypto Task Force has embarked should be more enjoyable and less perilous than the crypto journey the Commission has taken the industry on for the past decade,” Peirce stated.
Furthermore, Congress has officially established its first-ever joint Congressional Crypto Working Group, led by Senate Banking Committee Chairman Tim Scott.
Working with the Trump administration, @SenatorTimScott and his colleagues are committed to ensuring that innovation in the digital assets industry occurs here in the U.S., not abroad.
With a united front, the U.S. can be a leader in digital assets. pic.twitter.com/1C8NM1WAWY— U.S. Senate Banking Committee GOP (@BankingGOP) February 4, 2025
Additionally, a stablecoin bill proposed on Tuesday by Sen. Bill Hagerty is likely to advance first, according to Scott. Named the GENIUS Act, the bill aims to establish legal frameworks for issuers of USD-backed stablecoins.
In light of these developments, it remains uncertain what impact the downsizing of the SEC’s crypto enforcement unit will have on ongoing enforcement actions, including the protracted SEC vs Ripple case.
“What the new SEC leadership intends to do for crypto is remove the speed limits and guardrails that have made our capital markets the strongest in the world,” remarked Corey Frayer, a former senior adviser to Gensler on crypto matters, who recently departed from the SEC.
In May 2022, the agency’s crypto enforcement team nearly doubled in size to 50 dedicated positions under former SEC Chair Gary Gensler.
The post US SEC Scales Back 50-Member Crypto Enforcement Team: Report appeared first on Cryptonews.
