Key Takeaways
- US SEC is scaling down as officers and laws get reassigned under the administration of Donald Trump.
- The new SEC task force has launched its website as part of the initiative to bring new changes to the SEC regulations and how it operates.
- The SEC changes have sparked concerns among investors and other crypto enthusiasts due to the rapid easing of restrictions put under Gary Gensler’s reign.
The US Crypto Regulations are rapidly shifting under the rule of Donald J Trump, the 47th President of the country. Under his administration, a number of changes were suggested and some were implemented, all in favor of the crypto sector. But, the one that drew the most attention was announced yesterday. Per this announcement, the US SEC will be reducing its size by a significant amount as part of its grand scheme to put the US as the top dog of the pro-crypto countries.
This article will explore this new development in the US crypto administration departments and what it implies for the wider crypto market and global economy.
US SEC Scales Down Under Trump’s Reign
Everyone knew that Trump’s victory in the Presidential Election would mark a new dawn for the crypto regulatory environment in the US. It was solidified with the resignation of Gary Gensler on the day of Trump’s inauguration ceremony. But no one expected what came next. Two weeks into his reign, Trump has already taken action to cut the power of the US SEC by a significant margin.
The US SEC under Gary Gensler’s leadership has introduced a lot of positions and staff into it to strengthen its force and power. And, more than 50 lawyers and staff were introduced under his leadership, which were later known as the “Cyber Unit of the SEC”. All of his efforts and preparations taken against the crypto giants are now in the gutter as new policies are introduced with each passing day, starting with downsizing and transfer of staff.
New Policies Introduced Into SEC
Apart from the downsizing of the employees, several new policies and other measures were also introduced inside the US Securities and Exchanges Commission. Per the latest reports, any and all enforcement staff need to secure approval from the commissioners before going to work on an investigation. This includes subpoenas and compelling testimonies as well.
This is entirely different from the approach put forward by Gensler during his reign, which allowed staff to conduct independent investigations. Even though the aim was to ensure a controlled and evidence-based investigation, it poses several concerns, especially about the time delay in approving an investigation.
Task Force Blooms Under New SEC
Mark Uyeda, the active US SEC chairperson, has established a new task force to monitor and review various regulatory measures put forward by the US SEC under Gensler’s reign on the 21st of January. Hester Pierce, who is not a fan of the SEC is the one appointed as the lead initiative of the new task force. The new SEC chair introduced the task force to “ develop a comprehensive and clear regulatory framework”.
The crypto task mainly focuses on clarifying digital assets security statuses and transforming complex crypto-related registrations into much easier and simpler ones. The task force now trying to fix various regulatory issues concerning lending, staking, and other crypto-related services.
Task Force Launches Their New Website
The US SEC task force, which was formed recently has kickstarted its operation after the successful launch of its new website. The platform officially became operational today on the 5th of February 2025, inviting the public to the new platform to provide their feedback and written inputs to the officials.
Unless marked confidential, all the comments can be visible on the official website, meaning it isn’t exactly the spot to submit any whistleblower tips or other information that could pose a threat to your life. This is considered one of the many policies and measures introduced by the SEC task force under the rule of Hester Pierce to clean up the “mess” made by the SEC in the past years.
Impact Of US SEC Changes on the Market
The downsizing of the US SEC is definitely going to have a huge impact on the crypto market. This is mainly because the unit that was being downsized is the one that is responsible for protecting investors from malicious activities in the crypto market, safeguarding the crypto assets from various cyber threats, and the enforcement of several laws.
This rapid change in the employee count has already resulted in various crypto enthusiasts raising their voices. They are especially concerned about the pending cases, including their lawsuit against major crypto giants like Coinbase. A lot of the prominent figures in the crypto sector have also registered concerns about this supposed removal of much-needed “speed limits and guardrails” from the sector.
