Crypto Regulation Under Trump’s SEC: Traditional Enforcement, Selective Retreat

Crypto Regulation Under Trump’s SEC: Traditional Enforcement, Selective Retreat

As the SEC adapts to the Trump administration’s priorities, a Bloomberg Law article suggests law firm leaders should take note of how crypto regulation and enforcement are evolving. 

Despite expectations of reduced activity, the agency’s enforcement pace remains steady: 44 actions since Inauguration Day, only slightly down from 48 the year prior. The SEC is narrowing its focus to core fraud cases such as insider trading and Ponzi-like schemes, while scaling back high-profile crypto enforcement from the Gensler era.

SEC Chairman Paul Atkins is positioning the agency as investor-focused, highlighting a return to foundational fraud prosecutions while retreating from more aggressive assertions of jurisdiction over major digital asset firms. 

Although the SEC has dropped several crypto cases from the Biden era, it continues to pursue crypto-related frauds, especially where investor harm is significant. Recent actions have targeted schemes that leverage crypto buzzwords to mislead investors, reflecting a strategy to tackle clear, traditional violations, even in the digital space.

At the same time, the SEC is signaling its regulatory intent through public guidance, not just litigation. New advisories on crypto ETFs and staking underscore the agency’s aim to outline expectations in the absence of finalized rules. While Atkins’ approach emphasizes engagement and clarity, long-term regulatory certainty hinges on legislation. Two key crypto bills—the CLARITY Act and the GENIUS Act—may soon provide that foundation.

For managing partners, clients in the digital asset space remain at risk if enforcement is narrowly focused but no less aggressive. Advising clients requires vigilance not only in compliance but also in anticipating how evolving guidance and forthcoming legislation on crypto regulation may redefine the rules.