CDS Crypto News Crypto News (February 5, 2025) – Crypto Regulation at a Crossroads: SEC’s New Direction Raises Eyebrows
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Crypto News (February 5, 2025) – Crypto Regulation at a Crossroads: SEC’s New Direction Raises Eyebrows

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Crypto News (February 5, 2025) - Crypto Regulation At A Crossroads: Sec’s New Direction Raises Eyebrows

Crypto News (February 5, 2025) – Crypto Regulation Turning a New Leaf: SEC Restructures Its Enforcement Strategy

Crypto News (February 5, 2025) – The U.S. Securities and Exchange Commission (SEC) is reportedly scaling back its crypto enforcement unit, which previously consisted of 50 staff members. Sources familiar with the matter told The New York Times on February 4 that some lawyers in the crypto unit will be reassigned to other departments within the agency. The move comes after reports that one of the unit’s top lawyers was reassigned from the SEC’s enforcement arm, a decision some have labeled an unfair demotion. Despite the changes, an SEC spokesperson declined to comment on the matter when approached by Cointelegraph.

Shifting Priorities at the SEC: A New Crypto Regulatory Approach

This restructuring comes on the heels of SEC Commissioner Hester Peirce outlining a new approach to regulating the crypto markets. The plan includes evaluating the security status of crypto assets and providing retroactive relief for certain token offerings. Peirce compared the SEC’s previous regulatory approach to “careening down the road” while constantly slamming on the enforcement brakes. She also expressed optimism that the newly formed Crypto Task Force would make the industry’s regulatory journey less risky and more enjoyable than the SEC’s past efforts over the last decade.

Crypto News (February 5, 2025) - Crypto Regulation At A Crossroads: Sec’s New Direction Raises Eyebrows

SEC Crypto Enforcement Actions in 2024

In 2024, the SEC initiated 33 cryptocurrency-related enforcement actions against 90 defendants and respondents, according to Cornerstone Research. These actions followed a broader shakeup in the SEC’s leadership, which accelerated after President Donald Trump took office in January 2024. The shakeup included the departure of Gubir Grewal, the SEC’s chief enforcement officer, in October 2024. Grewal had recommended over 100 enforcement actions targeting widespread noncompliance in the rapidly growing crypto space.

Leadership Changes Within the SEC

Since Grewal’s departure, Sanjay Wadhwa, the deputy director of the enforcement division, briefly took over as acting director but resigned on January 31, 2025, after more than 21 years with the commission. Meanwhile, former SEC Chair Gary Gensler also stepped down on January 20, 2025. These leadership changes suggest that the SEC may be moving toward a less aggressive approach to regulating the cryptocurrency sector.

As the regulatory landscape shifts, crypto market participants and investors are closely watching how the SEC’s actions will impact the future of cryptocurrency enforcement and regulation in the U.S.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.

Crypto News (February 5, 2025) - Crypto Regulation At A Crossroads: Sec’s New Direction Raises Eyebrows
Written by
Ecem EFE

Since 2022, Ecem has been creating digital content, combining her passion for technology with writing. Continuing her education in the Mathematics department, Ecem focuses on producing in-depth content on areas such as blockchain, artificial intelligence, and cryptocurrency. She aims to simplify these topics and present them to a wide audience, sharing valuable insights into the crypto industry through her writing. With her innovative content, she strives to raise awareness in the digital world.

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