The U.S. Securities and Exchange Commission (SEC) has significantly scaled back its cryptocurrency enforcement efforts. In a recent tweet, John Reed Stark, a former official at the SEC, claimed in this regard that the agency’s crypto enforcement division is now “dead and buried.”
The SEC Crypto Unit is Now Unofficially Dead and Buried
Per LinkedIn, the SEC’s “Crypto Assets and Cyber Unit,” is now the “Cyber and Emerging Technologies Unit.” It won’t be long before the SEC’s website reflects the new name. Stick a fork in SEC crypto-enforcement, it’s done. pic.twitter.com/9JkywyZ30Q
— John Reed Stark (@JohnReedStark) February 13, 2025
The SEC recently changed the name of the enforcement units related to cryptocurrencies on LinkedIn from “crypto assets” to “emerging technologies.” According to Stark, the move was initiated by the Acting SEC Chair Mark Uyeda to effectively disband crypto enforcement.
Stark also further opined that the SEC would tone down on operations regarding cryptocurrencies. He said that the agency might withdraw or dismiss some of the already pending cases. The SEC paused its case against Binance for two months earlier this week adding to the belief of the dwindling enforcement activities.
Currently, the SEC has not formally addressed the rebranding of the agency’s crypto enforcement unit. However, Stark opined that the agency’s website would soon change in the same regard.
He stated, “It won’t be long before the SEC’s website reflects this new name. Perhaps the SEC will roll out the new name as some sort of feeble rebranding attempt.”
SEC reevaluates crypto regulation strategy
During a recent interview, commissioner Hester Peirce also acknowledged that the agency is reevaluating its approach to the crypto sphere. The SEC has often used enforcement actions to mediate the industry while recognizing that such measures are not conventional in policymaking. She insisted that they need rules and structure, not to pursue litigation-based regulation.
“During the past several years, enforcement cases have been used as a way to make regulatory policy; that is very atypical,” Peirce stated. “We’re trying to get back to a path where we’re really using our other tools to make policy.”
As noted by Stark, the SEC recently asked for a sixty-day stop to its ongoing legal case against Binance. In its defense, the agency stated the crypto task force would affect ongoing legal cases. The agency’s new direction may affect its former actions under the latest updated enforcement strategy.
New task force and legal case reviews
Peirce is currently leading the SEC’s crypto division, which focuses on creating a legal framework for the use of cryptocurrencies. The unit is tasked with determining which cryptocurrencies are securities and the SEC’s regulatory role in the market. The agency is also considering active litigation with leading crypto companies such as Binance, Ripple, and Coinbase.
Peirce did not clarify whether there would be any dismissal of cases, but she said all would be decided on a case-by-case basis.“It’s facts and circumstances,” she said. “We’ll have to look at each case and its merits as we go forward.”
Some cases have already experienced delays. In the SEC’s lawsuit against Lejilex, the two parties decided to postpone the oral arguments, which were initially planned for February 20th, increasing the decision duration to at least April 11, 2025.
The uncertainty regarding cryptocurrency under the SEC has shifted alongside other regulatory policies under Trump’s presidency. After his Inauguration, President Donald Trump issued an executive order to create a panel that will consider how crypto is regulated. The government is also exploring the idea of creating a national crypto stockpile, which might influence the industry’s progress.
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