SEC Restructures Cryptocurrency Division Under New Leadership
The Securities and Exchange Commission (SEC) is making significant changes to its cryptocurrency regulation approach, including staff reductions and new oversight requirements. The special cryptocurrency enforcement unit, which currently employs more than 50 lawyers and staff members, will be downsized with some attorneys transferring to other departments.
The changes come as part of a broader shift in cryptocurrency regulation under the current administration. SEC lawyers will now need to obtain permission from the presidential administration before launching formal investigations into market participants. This represents a departure from traditional SEC operations, where the agency typically operates under the oversight of its five-member commission.
Commissioner Hester Peirce, known in the crypto community as 'Crypto Mom', has been appointed to lead a new Crypto Task Force. On February 4, 2025, Peirce published an article outlining ten priority areas for the task force, including defining boundaries between different types of digital assets and creating clearer paths for crypto company registration.
The same day, David Sacks, serving as 'crypto czar', held a press conference with members of Congress to discuss regulatory priorities. Their first focus will be examining stablecoin legislation, while also exploring the possibility of establishing Bitcoin reserves for the United States at the president's request.
The reorganization follows one of President Trump's executive orders aimed at reducing regulatory pressure on the digital asset market. The current SEC commission consists of three members, all presidential appointees, who will oversee these changes in regulatory approach.
The new task force under Commissioner Peirce is designed to develop more transparent rules for cryptocurrency regulation. Key areas of focus include clarifying the status of staking and crypto lending, as well as defining the responsibilities between the SEC and other regulatory bodies.
