The Securities and Exchange Commission has scaled back a team of more than 50 lawyers mobilized for crypto enforcement, The New York Times reported Tuesday.
The announcement comes after one of President Donald Trump's first executive orders to eliminate "regulatory overreach" of digital assets. Acting SEC Chair Mark T. Uyeda, a Republican supporter of crypto, has appointed Commissioner Hester Peirce to lead a task force reviewing the agency's approach. Peirce is also a supporter of crypto.
On Tuesday, Peirce published a paper on the SEC's website criticizing the commission's past approach to regulating digital assets.
"The commission's handling of crypto has been marked by legal imprecision and commercial impracticality," Peirce wrote. The task force, she added, will aim its regulations around promoting the "great freedom to experiment and build interesting things," but "will not be a haven for fraudsters."
It is unclear at this time what effect downsizing the agency's former crypto unit will have on regulations around digital assets. Moreover, the shift raises questions about ongoing lawsuits and their impact going forward. One such lawsuit from 2023 against Coinbase challenged former SEC Chair Gary Gensler's stance that most digital assets are securities.
Trump has nominated Paul Atkins, a crypto-friendly former SEC commissioner, to replace Gensler.
Nick Koutsobinas ✉
Nick Koutsobinas, a Newsmax writer, has years of news reporting experience. A graduate from Missouri State University’s philosophy program, he focuses on exposing corruption and censorship.
© 2025 Newsmax. All rights reserved.