⬇️Good news for cryptocurrency? SEC is “reducing” its crypto enforcement division!
According to a report by The New York Times on February 4, the U.S. Securities and Exchange Commission (SEC) is reducing the size of its cryptocurrency enforcement division. The division previously had more than 50 lawyers and staff, and now some have been transferred to other divisions. I heard that even top litigation lawyers were transferred away, and some people think this is an “unfair demotion.”
After taking office, the new SEC Chairman Mark Uyeda immediately set up a team to review the regulation of digital assets. The team was led by Hester Peirce, a pro-cryptocurrency commissioner. The SEC previously relied mainly on enforcement actions to regulate cryptocurrencies, and often used some new and untested legal interpretations. However, it now seems that the regulatory direction is changing.
In addition, the executive order signed by President Trump on January 23 aims to promote the development of cryptocurrencies and eliminate the excessive regulation of financial regulators in the past few years. The policy mentions providing a regulatory framework that is “technologically neutral, considers emerging technologies, transparent decision-making, and clear judicial boundaries.”
Hester Peirce also said that the main tasks of the new working group include reviewing the security of crypto assets, solving token issuance issues, updating broker-dealer regulations, etc. She also mentioned cryptocurrency lending and staking, as well as cryptocurrency exchange-traded products. In short, the SEC seems to be shifting from "strict law enforcement" to "clear regulation."
According to news on February 4, Trump's "crypto czar" David Sacks also held a press conference with several senators and proposed the "GENIUS Act", which focuses on stablecoin regulation and establishing a clear regulatory framework. They also announced the establishment of a joint working group on crypto legislation in the House and Senate, with the goal of keeping crypto innovation in the United States and coordinating regulatory work between agencies such as the SEC and the CFTC.
However, despite so much positive news, the cryptocurrency market fell nearly 5% that day, with a total market value of $3.15 trillion. Bitcoin also fell to $96,000 at one point, and its current value has returned to around $98,000, with opportunities and risks coexisting!
💬 Do you think these changes by the SEC are a big boon to the cryptocurrency market? Leave a message and discuss in the comment section!
