Basri Caneri 
The US Securities and Exchange Commission (SEC) is starting to downsize its 50-person crypto enforcement unit. While some lawyers were shifted to different departments, a senior lawyer was reportedly dismissed.
The New York Times reported on February 4 that while some employees were reassigned to other departments, the reassignment of one of the unit’s senior figures was considered by some SEC officials as an “unfair demotion”.
While the SEC has not made an official statement on the issue, it is stated that these developments signal a new regulatory approach.
Is the SEC’s Crypto Policy Transformation Beginning?
This news comes just hours after SEC Commissioner Hester Peirce announced the new crypto regulatory strategy. Peirce stated that the SEC’s aggressive enforcement actions in the past will now be reviewed and some tokens may retroactively gain legal status.
Peirce described the SEC’s previous crypto policy as “a vehicle that constantly brakes on the road ” and stated that the new approach will be a “less risky and more enjoyable journey “.
In 2024, the SEC imposed 33 crypto sanctions against 90 different individuals and organizations. However, recent leadership changes at the agency have strengthened expectations that the Trump administration will ease the SEC’s crackdown on the crypto sector.
Trump Administration and Leadership Change at the SEC
Major changes at the SEC gained momentum after Donald Trump took office on January 20.
- October 2024: SEC Chief Enforcement Officer Gurbir Grewal resigns. Grewal was known for his lawsuits against the world’s largest crypto exchanges.
- January 2025: Sanjay Wadhwa, Deputy Director of the SEC’s Enforcement Division, leaves his post on January 31.
- January 2025: Former SEC Chairman Gary Gensler resigned from his post on January 20.
These resignations and the SEC’s signals to ease crypto sanctions raise expectations that the Trump administration will adopt a friendlier approach to the crypto sector. The new SEC administration is expected to provide more regulatory clarity to crypto firms and loosen tough sanctions on the sector.
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