The U.S. Securities and Exchange Commission (SEC) is signaling a strategic pivot in its enforcement priorities, moving away from its recent emphasis on cryptocurrency-related cases. Acting Enforcement Director Sam Waldon announced on Monday that the agency will now concentrate on traditional areas such as insider trading, accounting, and disclosure fraud, as well as addressing issues related to emerging technologies and retail investor fraud.
This shift comes in the wake of President Donald Trump’s appointment of Paul Atkins, a former SEC commissioner known for his pro-industry stance, to lead the agency. Atkins’ leadership is anticipated to foster a more accommodating environment for the financial sector, including the cryptocurrency industry.
Reflecting this change in direction, the SEC has restructured its enforcement units. The previously established “Crypto Assets and Cyber Unit” has been renamed the “Cyber and Emerging Technologies Unit,” with a reduced team of approximately 30 fraud specialists and attorneys. This reorganization underscores the agency’s intent to broaden its focus beyond digital assets.
In line with this new approach, the SEC has recently withdrawn several high-profile lawsuits against cryptocurrency firms. Notably, the case against Ripple Labs was dropped, leading to an 8% surge in the price of XRP following the announcement.
These developments suggest a significant transformation in the SEC’s regulatory approach, potentially fostering a more favorable environment for innovation within the cryptocurrency sector.
