- SEC continues to change agency strategy
- SEC reassigned 50 lawyers and staff members
- They were previously appointed to regulate cryptocurrencies
The SEC continues to shift strategy and implement pro-crypto changes, which now include staff. The new leadership has reassigned the unit of 50 lawyers and staff members previously hired to regulate cryptocurrency.
More About SEC Staff Changes
The SEC’s previously announced Crypto 2.0 mandates a revision of the security status of crypto assets, the implementation of a more measured and structured approach, and the creation of a transparent and sustainable legal framework for the crypto industry. However, it does not prescribe personnel changes, and yet it seems to coincide with the pro-crypto strategy chosen by the agency’s new leadership.
According to a New York Times report, the new SEC leadership has made sweeping personnel changes and reassigned 50 lawyers and staff members previously hired to regulate the crypto industry in the name of safety.
“Some of the lawyers in the crypto unit are being assigned to other departments in the S.E.C., the people said. One of the unit’s top lawyers was moved out of the enforcement division. Some of the people briefed on the shake-up described that move as an unfair demotion.”
However, as Cornerstone Research calculated, they’ve taken 33 enforcement actions targeting 90 defendants and respondents alone, one of the most high-profile being the Gary Gensler and Ripple fight. In particular, the new agency’s Commissioner Hester Peirce said:
“SEC’s past crypto enforcement strategy to a reckless driver “careening” down the road while continuously slamming on the brakes.”
Peirce adds:
“The commission’s handling of crypto has been marked by legal imprecision and commercial impracticality. The goal of the task force would be to come up with a regulatory framework that permits people to experiment and build interesting things without allowing crypto to become a haven for fraudsters.”
Conclusion
Since mining Bitcoin and other cryptocurrencies, developing new crypto platforms, and other DeFi activities have become a key priority for the new administration, which we see daily evidence of – this is probably not the last major reshuffling of key agencies.
Perhaps we should get ready for new, sometimes unexpected turns, but fast-paced rides. Be aware and stay tuned.
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