The US Securities and Exchange Commission (SEC) is downsizing its crypto assets unit, which currently has a staff of 50.
According to five sources familiar with the matter, some of the unit's lawyers will be moved to other departments within the agency, The New York Times reported on Feb. 4.
One of the crypto unit's top lawyers has also been moved from the SEC's enforcement arm, which has been criticized as an unfair demotion.
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This news comes shortly after SEC Commissioner Hester Peirce outlined a new approach to regulating cryptocurrency markets, which involves assessing the security status of crypto assets and potentially offering "retroactive relief" for certain token offerings.
Peirce likened the SEC's previous approach to a reckless road trip, and expressed hope for a smoother, less risky ride with the newly announced task force.