The US crypto regulatory landscape is undergoing many major changes and lawmakers are expected to push forward crypto-friendly legislation ahead of the 2026 midterms. Meanwhile, the SEC is reassessing its stance on crypto assets, and Commissioner Hester Peirce revealed plans for potential retroactive relief and a more predictable regulatory framework. The agency is also scaling back its crypto enforcement unit after several key leadership departures. Crypto Legislation Could See a Breakthrough Anthony Scaramucci, founder of SkyBridge Capital and former White House communications director under Donald Trump, believes that US lawmakers will look to get on the good side of the crypto community ahead of the 2026 midterm elections. In an interview with the Financial Times on Feb. 4, Scaramucci suggested that members of Congress, particularly those facing competitive primaries and elections in swing districts, will want to establish a track record of supporting crypto-related legislation before the next electoral cycle. He speculated that Congress could push forward a wave of legislative activity before its holiday recess in 2025, possibly including a long-awaited crypto market structure bill. Scaramucci said lawmakers might move on crypto regulation as early as November 2025, but if they failed to act by then, it will likely still happen in his proposed timeframe. Scaramucci has been a very outspoken critic of Trump in the 2024 election, and firmly believes his pro-crypto stance was purely transactional rather than genuine support for the industry. He went further by describing Trump as “unwell” and warning of the dangers of the political power he has accumulated. His comments only added to the debate over how crypto is shaping political alignments in Washington, particularly as industry-backed political action committees (PACs) begin to play a much larger role in influencing elections. Special interest groups and PACs are expected to have a huge impact on the 2026 elections, especially as candidates try to appeal to more crypto-focused voters. The Fairshake PAC spent around $131 million in the 2024 US elections to support pro-crypto candidates, and plans to continue its efforts into the midterms. The growing financial backing of the industry also suggests that lawmakers may face more pressure to take clear positions on digital assets. Scaramucci also weighed in on Trump’s controversial entry into the meme coin market by calling the launch of the TRUMP token damaging to the industry. The President introduced the token on Jan. 17, just before returning to office, which led to a massive surge in market cap that briefly exceeded $15 billion before dropping. TRUMP market cap since its launch (Source: CoinMarketCap ) He compared the project to the scams that have plagued the crypto space for years now, and argued that it reflects poorly on an industry that is already fighting for legitimacy in the eyes of regulators and the public. SEC Explores New Approach to Crypto Assets The US Securities and Exchange Commission (SEC) is taking a new approach to regulating the crypto sector, which includes reassessing the security status of digital assets and considering retroactive relief for certain token offerings. SEC Commissioner Hester Peirce issued a statement on Feb. 4 revealing that the White House’s newly announced Crypto Task Force is recommending SEC action to grant temporary prospective and retroactive relief for coin or token offerings, provided they meet specific conditions. SEC statement These conditions include updating and providing necessary disclosures and agreeing not to contest the commission’s jurisdiction in cases involving alleged fraud related to the purchase and sale of crypto assets. She also shared that the task force is reconsidering the classification of certain assets as securities, and acknowledging that the legal status of crypto assets is very crucial when it comes to addressing broader regulatory concerns. The election of Donald Trump in November started a major shift for the crypto industry as his administration moved quickly to reshape regulatory oversight. Trump appointed Paul Atkins, a pro-crypto advocate, as the new SEC chair, introduced a special advisory role focused on cryptocurrency and artificial intelligence, and signed an executive order to establish a digital asset working group. Coinbase CEO Brian Armstrong believes the administration will also prioritize passing stablecoin regulations , which he considers essential to maintain the US dollar’s dominance as the world’s reserve currency. Lawmakers are also actively pushing for clearer regulatory guidelines. Republican Representative Tom Emmer stated that passing comprehensive market structure and stablecoin legislation will be a key priority for Congress. With growing interest from traditional financial institutions, clearer rules could accelerate mainstream adoption of digital assets. Bank of America CEO Brian Moynihan indicated that banks are particularly focused on crypto payments, and suggested that if digital transactions become more established, the banking sector will aggressively move into the space. SEC Scales Back Crypto Enforcement Unit The US SEC is also reportedly scaling back its dedicated crypto enforcement unit by reassigning some of its 50 staff members to other departments in the agency. According to a Feb. 4 report from The New York Times, multiple sources confirmed that one of the unit’s top lawyers has already been moved from the SEC’s enforcement arm. However some insiders viewed it as an unfair demotion. The report was published very shortly after SEC Commissioner Hester Peirce outlined the new shift in the agency’s regulatory approach to digital assets, including the reassessment of the security status of crypto assets and the possibility of retroactive relief for certain token offerings. Peirce compared the SEC’s previous enforcement-driven strategy to a chaotic road trip that frequently slammed on the brakes, and shared that the new Crypto Task Force plans to create a much more stable and predictable regulatory environment. The SEC’s crypto enforcement unit played a big role in cracking down on noncompliance in the industry by bringing 33 enforcement actions against 90 defendants in 2024 alone, according to Cornerstone Research . However, recent developments indicate that there will be a broader leadership shift at the agency, which has gained a lot of momentum since Donald Trump took office on Jan. 20. (Source: Cornerstone Research ) A series of high-profile departures also completely reshaped the SEC’s enforcement landscape, including the resignation of Chief Enforcement Officer Gubir Grewal in October of 2024. Grewal was a strong advocate for aggressive crypto oversight, and recommended more than 100 enforcement actions against major industry players. His departure started speculation that the agency may be adopting a softer regulatory stance. Sanjay Wadhwa, who was promoted to acting director of the enforcement division, also left the SEC on Jan. 31 after more than two decades at the agency. Meanwhile, former SEC Chair Gary Gensler officially resigned on Jan. 20, which coincided with Trump’s return to office. These leadership changes and a potential reduction in crypto enforcement efforts suggest that the regulatory approach to digital assets in the US is in the middle of a major transformation.
