The U.S. Securities and Exchange Commission (SEC) is scaling back its crypto enforcement unit, a move that signals a shift in regulatory oversight under President Donald Trump’s pro-crypto administration. According to insiders, the SEC is reassigning over 50 lawyers and staff from its crypto enforcement division, reducing its focus on digital asset regulations.
Trump Administration Eases Crypto Regulations
The decision aligns with Trump’s executive order aimed at fostering crypto industry growth and curbing regulatory overreach. This policy change marks a departure from the strict stance of the previous administration, which frequently clashed with the cryptocurrency community over enforcement actions.
Reports indicate that some SEC attorneys are being reassigned, while a key lawyer from the crypto unit has already transitioned out of the enforcement division. Despite these shifts, an SEC spokesperson declined to comment on the changes.
Trump’s Crypto-Friendly Stance Sparks Industry Optimism
Previously a cryptocurrency skeptic, Donald Trump embraced digital assets during his 2024 presidential campaign, securing support from crypto investors and industry leaders. His administration’s policies are expected to provide regulatory clarity and encourage blockchain innovation in the U.S.
The newly appointed acting SEC chair, Mark Uyeda, has historically supported crypto-friendly policies. Uyeda has already initiated major staffing changes and appointed Commissioner Hester Peirce, a well-known crypto advocate, to lead a special task force focused on reviewing the SEC’s approach to blockchain regulations.
A New Era of Crypto Regulation in the U.S.?
In a position paper published on February 4, Peirce criticized the SEC’s previous handling of crypto regulations, calling it “legally imprecise and commercially impractical.” She emphasized the need for a balanced regulatory framework that enables crypto innovation while preventing fraud and market manipulation.
This regulatory pivot could have a major impact on cryptocurrency markets, particularly for companies and investors concerned about SEC lawsuits, compliance issues, and token classifications. As the U.S. shifts toward a pro-crypto stance, industry leaders are closely watching how these changes will shape crypto adoption, trading, and investment strategies moving forward.
