In a significant shift within the regulatory landscape, the U.S. Securities and Exchange Commission (SEC) has decided to downsize its specialized cryptocurrency division, which previously employed over 50 attorneys and support staff dedicated to enforcement actions in the digital asset sector. According to The New York Times, this move marks one of the initial concrete steps taken by President Trump’s administration concerning the oversight of cryptocurrencies and digital assets. The president’s early executive orders aimed to foster the growth of cryptocurrency while streamlining regulations that could hinder the market’s progress.
Reports indicate that several attorneys from this specialized division are being transferred to other SEC departments, with some expressing dissatisfaction over perceived demotions. A senior lawyer noted a reassignment from the enforcement sector, raising concerns about job security and morale within the division. Notably, the SEC refrained from providing any official commentary regarding these changes, leaving industry stakeholders curious about future regulatory dynamics.