- SEC downsizes its crypto enforcement unit, reassigning over 50 staff members as part of Trump administration’s regulatory shift.
- Commissioner Hester Peirce takes lead of new crypto task force, signaling major policy changes ahead.
- Previous regulatory framework under former Chair Gary Gensler faces criticism for lack of clarity and excessive enforcement.
- Trump administration scraps SAB121 accounting rule that required firms to treat customer crypto as liability.
- Executive order bans CBDC development while establishing presidential working group on crypto policy.
The U.S. Securities and Exchange Commission is dismantling its specialized crypto enforcement unit, moving more than 50 lawyers and staff to other departments, marking a significant shift in regulatory approach under the Trump administration’s new direction for digital asset oversight.
The restructuring, first reported by The New York Times, includes the controversial reassignment of at least one senior lawyer from the enforcement division, which sources characterized as an “unfair demotion.”
Commissioner Hester Peirce, nicknamed “Crypto Mom” for her pro-innovation stance, now heads the agency’s newly formed crypto task force. In a public statement, she criticized the previous administration’s approach as “marked by legal imprecision and commercial impracticality.”
The reorganization raises questions about ongoing litigation, particularly the SEC’s lawsuit against Coinbase filed in 2023. Under former Chair Gary Gensler, the SEC pursued aggressive enforcement, arguing that most cryptocurrencies qualified as securities under the Howey Test – a legal framework from 1946 used to determine what constitutes an investment contract.
The Trump administration has already implemented significant policy changes, including eliminating Staff Accounting Bulletin 121 (SAB121), which had required financial institutions to record customers’ crypto holdings as both assets and liabilities on their balance sheets. This change aims to encourage traditional banks to integrate digital asset services.
Industry observers note this regulatory pivot aligns with Trump’s campaign promises to position the United States as a global crypto innovation hub. The administration’s executive order establishing a presidential working group on crypto policy while prohibiting Central Bank Digital Currency (CBDC) development represents a clear departure from previous regulatory approaches.
The restructuring signals a potential end to what industry leaders termed “regulation by enforcement” – a criticism frequently leveled at the Gensler-era SEC. This shift could provide the regulatory clarity that cryptocurrency companies have long sought, though questions remain about the fate of existing enforcement actions.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Bitdeer Acquires 101-MW Power Plant in Alberta for Bitcoin Mining Expansion
- XRP Ledger Experiences Hour-Long Network Outage, Ripple CTO Investigates Cause
- Major Cryptocurrencies Crash as $2.2B Liquidated Following New Trade Tariffs
- XRP Ledger Experiences Rare One-Hour Network Freeze, Recovers Spontaneously
- CFTC Restructures Enforcement Division, Aims to Combat Complex Fraud
