The Securities and Exchange Commission (SEC) has begun reducing its specialized cryptocurrency enforcement unit, which previously consisted of over 50 lawyers and staff members, according to sources familiar with the matter.
This restructuring marks an early indication of the Trump administration's lighter regulatory approach toward digital assets and cryptocurrencies. The changes align with President Trump's executive order aimed at fostering crypto industry growth while reducing regulatory oversight.
Several attorneys from the crypto unit are being transferred to other SEC departments, with one senior lawyer being moved out of the enforcement division entirely - a change some insiders view as an unfavorable reassignment.
The reorganization comes as the SEC's leadership undergoes its own transformation. Acting Chair Mark T. Uyeda, known for his pro-crypto industry stance, has initiated multiple personnel changes throughout the commission, which employs more than 1,000 lawyers.
Among Uyeda's first actions was establishing a review team to evaluate the SEC's digital asset policies. Commissioner Hester Peirce, a vocal cryptocurrency advocate, heads this initiative.
The shifts reflect a notable change in approach from the previous administration under Gary Gensler, whom the crypto community largely viewed as an adversary. This new direction mirrors President Trump's evolution from crypto critic to supporter during his 2024 presidential campaign, when he actively courted backing from the digital asset sector.
When contacted, an SEC spokesperson declined to comment on these developments.