SEC reassigns top litigator behind crypto lawsuits

The SEC has reassigned Jorge Tenreiro, a key figure in its legal battles against cryptocurrency firms, to another role within the agency.

According to the Wall Street Journal, the Securities and Exchange Commission moved Tenreiro into another role in its information technology office as the federal watchdog appears to be shifting its approach to crypto regulation under new leadership.

As the Journal reported, Tenreiro played a central role in multiple lawsuits against crypto exchanges and platforms, cases that were seen as pivotal in defining the SEC’s authority over digital assets.

His reassignment follows acting SEC Chairman Mark Uyeda’s announcement unveiling a task force aimed at reevaluating the agency’s approach to crypto enforcement. That effort – announced the same day Uyeda took the lead at the SEC – is headed by Republican Commissioner Hester Peirce, who has been critical of the SEC’s past enforcement strategy.

“The commission refused to use regulatory tools at its disposal and incessantly slammed on the enforcement brakes as it lurched along a meandering route with a destination not discernible to anyone,” Peirce wrote in a statement Tuesday.

The SEC’s stance on crypto became a flashpoint during the Biden administration, with former Chair Gary Gensler spearheading enforcement actions against some of the largest crypto firms.

In launching those actions, the Gensler-led SEC had expected courts would find many firms selling crypto assets illegally in breach of investor protection laws. While the agency secured settlements in certain cases, others, including its long-running lawsuit against Coinbase Global, remained unresolved.

With the commission now under Republican control, industry analysts expect the SEC to settle or drop some of the outstanding cases rather than pursue extended litigation. Crypto firms have long argued that existing SEC regulations are ill-suited to digital assets, making compliance difficult. The industry made progress on that front in late January when staff at the SEC axed accounting guidance that hamstrung crypto firms' ability to work with traditional banks.

Tenreiro’s reassignment also coincides with a broader political shift in Washington. Former President Donald Trump, a vocal supporter of cryptocurrency, has positioned himself as an ally of the industry. While his administration’s policies previously targeted fraudulent crypto offerings, they stopped short of broader regulatory crackdowns.