Crypto Leaders Step Up Pressure On SEC As Trump's Policies Reshape Regulatory Landscape

The cryptocurrency industry, long at odds with U.S. regulators, is now pushing back harder than ever against the Securities and Exchange Commission after finding itself on more favorable ground under President Donald Trump's administration.

What Happened: Several leading crypto executives and firms, including Coinbase COIN and Ripple XRP/USD, are seizing the opportunity to challenge the SEC's aggressive past enforcement tactics, according to Politico.

The new strategy includes efforts to block law firms from hiring former SEC employees who played key roles in investigations targeting crypto companies, while also pressing for answers on the agency's past spending on crypto-related probes.

Coinbase CEO Brian Armstrong and Ripple's chief legal officer Stuart Alderoty are among those leading the charge, alongside Gemini's Cameron and Tyler Winklevoss, who have demanded that investigators involved in their case be held accountable publicly.

“Crypto doesn’t just need regulation for the sake of investors,” wrote Cameron Winklevoss on social media. “It needs protection from regulatory overreach itself.”

This assertive stance comes as Republicans in Congress work to establish clear jurisdictional boundaries for agencies like the SEC, which could limit its authority over digital assets.

Representative Bryan Steil (R-Wis.), chair of the House Financial Services Committee's digital assets group, said that refining oversight is key to preventing what he described as prior enforcement "excesses."

Yet this growing industry pushback has sparked a broader debate.

SEC staff, past and present, have voiced concerns that career professionals are being unfairly targeted in what some see as a politically charged environment.

William McLucas, a former SEC enforcement head, called recent attacks "deeply troubling" and warned against vilifying staff for carrying out their duties.

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Why It Matters: Behind the scenes, frustrations also appear to be mounting within the crypto space itself.

One senior industry figure, speaking anonymously, compared the situation to a prolonged vendetta, cautioning that continued escalation could be damaging for all sides.

Since Trump's return to office, the SEC, currently under acting chair Mark Uyeda, has begun to ease its posture, dropping or suspending several cases against crypto firms, including Coinbase and Robinhood HOOD.

Nevertheless, many in the industry remain unsettled by the millions spent on legal battles that were quickly abandoned under the new administration.

Paul Grewal, Coinbase's Chief Legal Officer, stressed that the focus should be on ensuring future regulatory clarity, while Ripple's Alderoty echoed the sentiment, calling for “accountability” rather than retribution.

Not everyone in crypto supports the harsher tactics being deployed. Some warn that the focus on personal retaliation against SEC employees could damage the sector's reputation just as new rulemaking efforts are underway.

Critics, such as former SEC adviser Corey Frayer, suggest the backlash is part of a calculated effort to reduce scrutiny over the long term.

"The industry wants to remove anyone who might stand in the way of its agenda," Frayer said.

For others, however, the SEC's rollback of enforcement cases signals that the crypto industry is already winning ground under the new administration and should shift toward building rather than settling scores.

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