The U.S. Securities and Exchange Commission (SEC) is making significant changes to its cryptocurrency enforcement division, which currently employs about 50 staff members. A report from The New York Times reveals that several attorneys from this unit will be reassigned to other divisions within the agency. Moreover, a high-profile lawyer from the enforcement team has been moved out of the division, prompting concerns from some employees who view this as an unwarranted demotion.
Changes in Personnel
When approached for comments, an SEC spokesperson did not provide any insights to Cointelegraph regarding these changes.
This shift in personnel coincides with remarks made by SEC Commissioner Hester Peirce, who discussed a revamped framework for regulating the cryptocurrency market. She indicated plans to review the classification of various crypto assets and hinted at the potential for retroactive relief concerning specific token offerings.
Peirce criticized the agency’s past approach to enforcement, likening it to a disorganized journey fraught with abrupt stops. She expressed optimism that the newly established Crypto Task Force would navigate the regulatory landscape more thoughtfully and efficiently than previous efforts over the last decade.
Enforcement Actions Overview
Data from Cornerstone Research indicates that the SEC launched 33 cryptocurrency-related enforcement actions in 2024, encompassing a total of 90 defendants and respondents.
The restructuring of the SEC’s crypto enforcement team is part of a larger leadership shakeup that has unfolded over recent months, especially following President Donald Trump’s inauguration. Gubir Grewal, the chief enforcement officer, stepped down in October 2024, igniting speculation about potential shifts in the SEC’s approach to cryptocurrency regulation. Earlier, Grewal had advocated for over 100 enforcement actions in response to widespread rule-breaking in the fast-evolving crypto sector.
Leadership Changes
Following Grewal’s departure, Sanjay Wadhwa, who previously held the position of deputy director within the enforcement division, stepped in as the acting director but left the agency shortly thereafter after more than two decades of service. Additionally, former SEC Chairman Gary Gensler also exited the commission, further contributing to the evolving landscape of the regulatory body.
Source: Cointelegraph
