Key Insights
- The enforcement of SEC crypto decreases dramatically as the litigation is replaced with rulemaking and targeted control.
- The DOJ liquidates its crypto division, and the SEC dismisses major exchange cases without fines.
- The new management slows down the accounting control in PCAOB inspections.
SEC Crypto Enforcement Shift Marks Regulatory Realignment Under Trump
The transformation in SEC crypto enforcement has continued to evolve significantly since President Donald Trump took office in January 2025, and this is part of a broader shift in regulators that extends beyond the digital asset industry.
According to federal data, judicial filings, and governmental pronouncements, the Securities and Exchange Commission’s position currently leans more toward a policy framework that focuses on rulemaking, selective supervision, and a decreased rate of litigation across various fields of finance, including cryptocurrency.
Since the start of the Trump administration, the SEC has dropped or paused roughly 60% of its enforcement actions against cryptocurrency companies, according to reporting by The New York Times.
The reduction followed early executive and administrative actions that reshaped the agency’s approach to digital asset oversight while also influencing the enforcement climate for traditional financial institutions and accounting regulators.
Policy Reset Begins Early in Trump Administration
The change in regulations took effect on the day of Trump’s inauguration. On January 21, the SEC declared the establishment of a Crypto Task Force headed by Commissioner Hester Peirce.
The order overturned several digital asset policies introduced under the Biden administration and established a Presidential Working Group on Digital Asset Markets. The working group was tasked with organizing federal agencies and prioritizing blockchain development as a national economic priority.
Following these actions, the SEC dismissed a series of high-profile investigations against crypto exchanges, including Coinbase and Kraken, without imposing any penalties. According to court records, these cases were not settled but closed, which is a deviation from the previous practice of enforcement.
SEC Crypto Enforcement Spurned, DOJ Alters Priorities
SEC crypto enforcement had an impact not only in this sphere. In April 2025, the Justice Department disbanded its National Cryptocurrency Enforcement Team, as reported in internal DOJ communications, according to various outlets.
The funds formerly dedicated to cases involving digital assets were diverted to immigration investigations and drug trafficking.
It has also been reported that the SEC is no longer actively pursuing enforcement measures against companies with close ties to Trump. The SEC has stated that its enforcement decisions are based on legal assessments rather than political considerations.
In April, Trump appointed Paul Atkins as SEC Chair. Atkins previously served as an SEC commissioner and has a documented record of opposing what he has described as regulatory overreach.
At the AICPA Conference on Current SEC and PCAOB Developments in December, Atkins criticized disclosure rules proposed under former SEC Chair Gary Gensler, stating that those rules would have conflicted with established financial accounting standards.
Oversight Changes Extend to Accounting Regulation
The regulatory shift has extended beyond the SEC to the Public Company Accounting Oversight Board. The PCAOB, which operates under SEC supervision, has reduced the frequency of inspections and enforcement actions since William Duhnke was appointed chairman by Trump.
Robert Pawlewicz, an accounting professor at the University of Richmond, told CFO Dive that formal abolition of the PCAOB is not necessary to limit its effectiveness. He stated that inspection and enforcement activity could continue to decline, similar to patterns observed during Trump’s first term.
In April 2025, the House Financial Services Committee advanced legislation that would abolish the PCAOB entirely.
Moreover, Atkins has previously criticized the PCAOB’s rulemaking authority, compensation structure, and budget, stating that its standards interfere with auditors’ professional judgment.
SEC Crypto Enforcement Reframed Through New Units
As enforcement actions declined, the SEC reorganized its internal structure. In February, the agency replaced its Crypto Assets and Cyber Unit with a broader Cyber and Emerging Technologies Unit staffed by approximately 30 fraud specialists. Acting SEC Chair Mark Uyeda stated that the unit would strike a balance between investor protection and support for technological innovation.
There was also an increase in legislative activity. In July, Trump signed the GENIUS Act, the first federal regulatory framework of stablecoins, into law. The law requires that issuers of stablecoins be fully backed by reserves, file monthly audits, and comply with anti-money laundering laws. The Digital Asset Market Clarity Act was passed in the House on a bipartisan basis.
Questions of Political Scrutiny and Campaign Funding
Despite the policy reforms, advocacy groups and lawmakers have criticized the policy. In early 2025, Senator Elizabeth Warren requested that the SEC Inspector General investigate her concerns that Trump administration officials might have been involved in regulatory decisions regarding cryptocurrency companies.
According to Warren, the president, Trump, and his team of advisors, as well as family members, have monetary interests tied to the crypto industry.
These organizations argue that the investment coincided with shifts in SEC crypto enforcement priorities.
