The Securities and Exchange Commission (SEC) is scaling back its specialized crypto enforcement unit by reassigning over 50 lawyers and staff. This restructuring reflects the changing landscape under President Donald Trump, who has promised to limit government intervention in the crypto sector. Some members of the crypto unit have been moved to different departments, and at least one senior lawyer has been removed from enforcement, which has been perceived by some as an unjust demotion. Commissioner Hester Peirce, now leading a crypto task force, has advocated for clearer guidelines and criticized the SEC's previous regulatory approach as lacking precision and practicality. This reshuffle raises questions about the SEC's ongoing lawsuits against major crypto firms like Coinbase. Last year, the SEC accused Coinbase of operating as an unregistered securities platform, which former Chair Gary Gensler viewed as a key test of regulatory authority over cryptocurrencies. This reform is part of the Trump administration's broader efforts to redefine crypto regulations, including the recent repeal of a policy requiring firms to categorize customer-held crypto as liabilities.

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