In what comes as the first significant step to regulate cryptocurrencies and digital assets is the US, the Trump administration has asked for the SEC’s reduction of a specialist team of more than 50 attorneys and staff people in charge of enforcing cryptocurrency laws, according to The New York Times.
A few of the unit’s attorneys have been transferred to other divisions, and several important attorneys’ transfers have been perceived as an unjust demotion.
The move comes in tandem with Donald Trump’s pro-crypto agenda and is aimed at removing the regulatory burden on the crypto sector.
SEC Downsizes Cryptocurrency Team
According to the report, the Securities and Exchange Commission’s handpicked team decided to reduce the size of its cryptocurrency enforcement unit just weeks after US President Elect Donald Trump took office.
This decision is perceived as Trump’s way of showing support for the crypto industry lobbyists who supported him in the just concluded US Presidential Elections 2024.
Media reports state that the US SEC’s Cryptocurrency Enforcement Unit once had more than fifty attorneys and employees dedicated to overseeing the digital assets of American businesses and investors.
The SEC, led by former chairperson Gary Gensler, has recently faced scathing criticism for its strict rules of the cryptocurrency sector.
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New Move Stays in Tandem With Donald Trump’s Promises of Better Crypto Regulations
The previous Biden government had taken a rather strict and vigilant stance over crypto sector. This had made most of the cryptocurrencies trade in a rangebound trajectory.
However, Donald Trump’s move of keeping pro-crypto officials at higher ranks and ensuring that the sector gets as much freedom as possible to flourish, demonstrates his idea of making “America a crypto capital”.
Donald Trump pledged in his 2024 campaign to lower restrictions and promote innovation in order to improve the atmosphere for cryptocurrencies.
He placed a strong emphasis on safeguarding cryptocurrency investors and making sure that digital assets can flourish free from stringent government regulations.
With a focus on innovation and market flexibility, the Trump administration has demonstrated a generally positive attitude toward cryptocurrencies.
Trump’s policies have encouraged deregulation and a hands-off approach, which has indirectly helped the crypto industry.
A more open atmosphere for blockchain and digital assets was promoted by the administration’s emphasis on loosening regulations on the financial markets.
Additionally, in his previous term, Bitcoin investments were affected by Trump’s tax revisions, such as the 2017 Tax Cuts and Jobs Act, which gave investors considerable leeway.
Despite a weak federal regulatory framework, the U.S. experienced an increase in private-sector investment in blockchain and Bitcoin initiatives under his previous administration.
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