The U.S. Securities and Exchange Commission (SEC) has downsized its specialized unit focusing on cryptocurrency enforcement. According to sources speaking to The New York Times, several lawyers from this unit, which consisted of around 50 members, have been reassigned to different departments. However, this restructuring coincides with a new approach that the SEC is adopting regarding cryptocurrency regulations. The newly formed task force is expected to clarify the legal classification of cryptocurrencies. Meanwhile, Mark T. Uyeda, appointed as the new chairman, is implementing significant changes within the commission.
SEC Reduces Size of Cryptocurrency Unit
The New York Times reports that the SEC’s cryptocurrency enforcement team has undergone a reduction. Some lawyers in this specialized unit have been shifted to other areas. The attention surrounding these changes is particularly due to the reassignment of some senior members of the unit.
Although the SEC has not released an official statement regarding these developments, the news has resonated throughout the cryptocurrency market. For years, the crypto sector has demanded regulatory clarity. Under Gary Gensler’s leadership, the SEC faced frequent criticism for its “enforcement-based regulation” policy.
New Task Force to Classify Cryptocurrencies
The SEC has launched a newly established cryptocurrency task force. This task force will work to determine which cryptocurrencies fall under the definition of securities. The commission has started gathering feedback from the industry and the public through a new webpage created yesterday.
SEC member Hester Peirce stated that the new team will clarify the legal status of cryptocurrencies. The crypto market has long experienced uncertainty regarding which assets fall under the SEC’s jurisdiction. According to Peirce, this initiative could represent a significant step for the market.
In other news, President Donald Trump is moving to appoint former regulator Paul Atkins to head the SEC. Atkins is known for his positive stance towards the cryptocurrency market, and this expected appointment could imply a fundamental shift in regulatory approach for the sector.
