📈SEC Scales Back Crypto Enforcement Unit

The US Securities and Exchange Commission (SEC) is reportedly scaling back its 50-person crypto enforcement unit, reassigning several lawyers to other departments. The move hints at a potential easing of the agency’s tough stance on crypto regulation.

One of the unit’s top lawyers was also transferred out of the enforcement division, a shift some insiders viewed as an unfair demotion. An SEC spokesperson declined to comment.

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The changes come as SEC Commissioner Hester Peirce outlined a new regulatory approach, including reevaluating the security status of crypto assets and considering retroactive relief for certain token offerings. Peirce has criticized the agency’s past enforcement-first strategy, likening it to “careening” down the road while repeatedly slamming on the brakes.

In 2024, the SEC took aggressive action against the crypto industry, bringing 33 enforcement cases against 90 defendants. However, recent leadership changes suggest a possible shift in direction. Chief Enforcement Officer Gubir Grewal resigned in October, fueling speculation that the agency may be reassessing its hardline approach. His deputy, Sanjay Wadhwa, stepped down on Jan. 31 after 21 years with the SEC.

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Former SEC Chair Gary Gensler’s resignation on Jan. 20 further adds to the transformation within the agency. With key leadership roles changing and the crypto enforcement unit being downsized, the SEC appears to be moving toward a more measured approach to crypto regulation.