U.S. Securities and Exchange Commission has started scaling down its crypto enforcement division, which was expanded by the past Chair, Gary Gensler.
Some of the 50 lawyers and staff members of the unit are currently being reassigned to other departments in the agency, The New York Times reported, citing five sources familiar with the matter.
One of the unit’s top lawyers was also moved out of the enforcement division, which some people said was “an unfair demotion.”
The downsizing of SEC’s enforcement division closely follows the creation of a crypto task force by the acting chair of the commission, Mark T. Uyeda. to bring about the needed clarity on what “crypto assets” are securities, among a long list of other things.
SEC is finally ending heavy crypto enforcement actions
The task force is led by pro-crypto SEC Commissioner Hester Peirce, who has always condemned the enforcement approach upheld by the agency under Gensler.
Under Gensler’s leadership, major crypto firms were slammed with a slew of securities violations, which led to a loud outcry by the crypto community, as there were not sufficiently clear rules by the SEC to tell what crypto tokens or offerings constitute a security.
Gensler left the SEC following President Donald Trump’s inauguration. During his campaign, Trump threw so much support on crypto and promised to restore order and America’s leadership in digital assets.
One of Trump’s first executive orders was aimed at “eliminating regulatory overreach.” He’d also nominated another pro-crypto person, Paul Atkins, to become the SEC Chair, pending a confirmation hearing by the Senate Banking Committee.