The US Securities and Exchange Commission (SEC) has taken promising steps in its new stance against digital assets, recently cutting its enforcement team.
A crypto regulatory-friendly US SEC has progressed following a change in the helm of affairs. Donald Trump’s appointment of Mark Uyeda as the acting chair of the top securities watchdog has ushered in a warmer embrace of the nascent sector.
The New York Times disclosed in a report that the SEC has taken fresh steps in eradicating regulatory tyranny towards the cryptocurrency sector. Per the Tuesday post, the regulator has scaled down its enforcement efforts toward the industry.
Regulators Slash Enforcement Workforce
Under Uyeda, the SEC has slashed its crypto enforcement workforce and repositioned affected staff to new jurisdictions. The NYT report, citing five people familiar with the issue, stated that this is part of the regulator’s changing disposition toward digital assets.
The redeployment affected one of the agency’s top lawyers in the crypto enforcement division, whom the unmentioned people described as an unusual demotion. Meanwhile, the shift came as the regulator plans to cut back on its infringement on digital assets.
Notably, a chunk of the lawyers joined the enforcement department following former boss Gary Gensler’s appointment. The anti-crypto chair expanded the unit, created in 2017, by more than double in May 2022 amid heightening lawsuits against crypto firms.
Meanwhile, Gensler used the lawyers effectively, bringing multiple lawsuits against digital asset firms, including top dogs like Coinbase, Kraken, Robinhood, and Binance.
Reactions Trail Announcement
Eric Balchinas, Bloomberg’s senior analyst, confirmed the NYT report in a tweet. Meanwhile, mixed reactions also trailed the development, with reactions swinging in from bullish and cautious perspectives.
For instance, one reaction hailed the reassignment as great news because it meant innovation could thrive again in the United States. However, another user insinuated that it suggests crypto investors will be under-protected from bad actors.
Meanwhile, others called for the SEC to take the next step and dismiss the Ripple case. Particularly, a comment suggested the agency drop the “ridiculous and outlandish appeal.”
Other SEC Efforts on Crypto Regulation
Remarkably, the SEC has made other efforts to regulate the crypto industry properly. The securities regulator recently set up a crypto task force, headed by Crypto Mum Hester Pierce, to review the SEC’s handling of the technological innovation.
Furthermore, the SEC has repealed the Staff Accounting Bulletin (SAB), a long-standing regulatory imposition discouraging the banking sector from interacting with the digital asset sector.
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