The Securities and Exchange Commission (SEC), the US securities watchdog, is offering a $50,000 severance package to some of its eligible employees. The move, part of the Trump administration’s push to reduce the federal government’s workforce, has raised questions about the future of cryptocurrency regulation in the United States. Could these voluntary departures mean an easing of pressure on the crypto sector, after years of an approach often perceived as restrictive?
SEC Cuts Staff: Details of the Separation Package
According to an internal memo sent by Ken Johnson, the SEC’s chief operating officer, eligible employees have until March 21 to apply for the voluntary severance package. To be eligible, they must have been employed by the agency before January 24 and voluntarily leave their positions by resigning, transferring to another agency, or retiring before April 4. In return, they will receive a $50,000 bonus, but will agree not to return to work at the SEC for at least five years, or they will have to repay the bonus in full.
This measure is part of the Department of Government Efficiency (DOGE), an initiative launched by the Trump administration and led by Elon Musk, aimed at reducing the federal government workforce. According to Reuters, more than 100,000 federal employees have already left their positions thanks to layoffs and contract buyouts. The SEC therefore appears to be following the lead of other government agencies in this cost-cutting policy.
Implications for crypto regulation: a shift in perspective?
If the SEC cuts its staff, it could have an impact on its activity of monitoring and regulating the cryptocurrency market. We have seen the SEC abandon certain trials. With fewer staff and a potentially reduced budget, the agency could be forced to re-prioritize and focus on the most important cases. This could mean a slowdown in investigations and lawsuits against crypto companies, or a more targeted and less systematic approach.
Furthermore, it is possible that this downsizing coincides with a change in philosophy within the SEC, driven by the Trump administration. As Commissioner Hester Peirce has pointed out, the SEC could adopt a more pragmatic and less dogmatic approach to crypto regulation, assessing the security status of different digital assets on a case-by-case basis. Time will tell whether this severance pay marks the beginning of a new era for crypto regulation in the United States.
