- The SEC is scaling back on its crypto enforcement tactics in lieu of Trump’s pro-crypto policies.
- The SEC has transferred around 50 lawyers, reassigning them to other tasks.
- The future of the SEC vs. Ripple lawsuit over the sale of XRP tokens remains uncertain.
The United States Securities and Exchange Commission (SEC) is witnessing a significant change in its regulatory stance on digital assets under the administration of new US President Donald Trump. While the agency used a regulation-by-enforcement approach over the past four years, the SEC is now reducing its crypto enforcement efforts.
A report from the New York Times reported that one senior attorney was transferred from the enforcement division. Such transfers are seen as unfair demotions by some insiders who spoke to the New York Times. However, it appears the SEC aims to support the growth of the cryptocurrency sector.
The downsizing of the crypto enforcement division followed an executive order from President Trump to lessen regulatory constraints on digital assets. Meanwhile, Senior Bloomberg analyst Eric Balchunas wrote on X (formerly Twitter) that a special unit of 50 lawyers and staff handling enforcement actions is now being reassigned.
Staff Reassignments and Expansion Plans
Note that the SEC undertook significant enforcement actions under former Chair Gary Gensler. As per a report, for 2025, Gensler called for an increase of 33 people in the enforcement division and 23 in the examinations division. Gensler cited “changing risks” as the reason for this expansion, supported by a $2.6 billion spending plan.
Related: SEC Tightens Reins on Enforcement: A Shift Towards Political Control?
Ripple vs. SEC Lawsuit
The future of the lawsuit filed by the SEC in 2020 against Ripple for the sale of XRP tokens remains uncertain. While the lawsuit was removed from the SEC’s website, it remains active according to official documents. Since the case hasn’t been officially dismissed, there is room for speculation on whether the agency intends to drop it altogether or continue proceedings under a modified approach.
Related: Litecoin ETF Could Beat XRP in ETF Race, Despite Multiple SEC Filings
On the other hand, Acting SEC Chairman Mark Uyeda has established a new task force to reassess the agency’s approach to digital assets. Uyeda will serve as chair for a few months until the Senate confirms Paul Atkins as the new SEC Chair.
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