SEC Reassigns Key Crypto Litigator Amid Shift to New Regulatory Approach
In a notable shift in its strategy toward the cryptocurrency market, the U.S. Securities and Exchange Commission (SEC) has reassigned Jorge Tenreiro, its top crypto litigator, along with another senior lawyer involved in developing controversial accounting guidance. The move, announced last week, comes as the agency pivots from aggressive litigation to exploring regulatory solutions that could ease tensions with crypto firms.
Reassignment Signals Policy Change
Jorge Tenreiro, who oversaw several high-profile lawsuits against crypto exchanges and platforms, was transferred to the SEC’s office of information technology—a department responsible for the agency’s computer systems. This reassignment, according to sources familiar with the matter, reflects the SEC’s broader shift in its approach to managing the volatile crypto market. Another senior lawyer, previously involved in drafting accounting policies that complicated banks’ abilities to safeguard crypto assets, was also reassigned. An SEC spokeswoman declined to comment on these internal changes.
Evolving Regulatory Landscape
The SEC’s strategy appears to be evolving amid significant political and industry pressures. Major crypto exchanges have recently invested millions in political-action committees, contributing to the election of lawmakers seen as more crypto-friendly. In parallel, former President Trump has publicly supported the crypto industry, recently selling a digital token valued at approximately $3.5 billion and advocating for a new regulatory framework through an executive order issued on January 23.
Under previous SEC Chair Gary Gensler, Tenreiro led a litigation strategy that sought to establish that many crypto assets were sold illegally due to non-compliance with investor-protection laws. While this approach resulted in some settlements, several key lawsuits—including a high-profile case against Coinbase Global—remained unresolved at the end of the Biden administration. The agency now appears inclined to settle these cases on terms more favorable to the companies or to dismiss them altogether.
New Direction Under Acting Leadership
Acting SEC Chairman Mark Uyeda has initiated a task force, led by Republican Commissioner Hester Peirce, to chart a new regulatory strategy for the crypto market. Peirce criticized the previous enforcement-heavy approach and has proposed a potential temporary amnesty program for cryptocurrency issuers. This program would allow coins to trade on exchanges without further SEC scrutiny, provided issuers meet basic disclosure requirements.
Additionally, Natasha Guinan, another senior SEC lawyer, was reassigned from her role in the chief accountant’s office. This move followed widespread criticism from crypto firms over accounting policies that hindered banks from securely managing crypto assets—a policy the SEC recently withdrew.
The SEC’s recent personnel changes and strategic adjustments underscore a significant pivot in its approach to regulating the cryptocurrency market. By moving away from an aggressive litigation stance toward a more regulatory and potentially conciliatory framework, the agency appears to be responding to both political pressures and the evolving dynamics of the digital asset industry. As the regulatory landscape continues to develop, industry stakeholders and investors alike will be closely monitoring how these changes impact the future of crypto regulation.