SEC Scales Back its Crypto Enforcement Unit

According to an article from the New York Times, the Securities and Exchange Commission (SEC) is reducing its efforts in regulating cryptocurrency as President Donald Trump fulfills his promises of deregulation.

The SEC will be downsizing its special unit of 50 lawyers and staff members dedicated to crypto enforcement, as reported by five individuals familiar with the situation. Some lawyers from the unit will be reassigned to other departments, and there have been claims that this change is an “unequal demotion.”

This decision comes shortly after Trump’s executive order that aims to establish a regulatory framework and eliminate “overregulation” of digital assets.

Trump had previously shown support for cryptocurrency during his campaign and recently appointed Republican Mark Uyeda as acting SEC Chair.

Uyeda’s first move in his position was to create a team to review the SEC’s enforcement-oriented approach to crypto regulation.