SEC Offers Staff $50,000 to Resign as Crypto Crackdown Eases: Report

The United States Securities and Exchange Commission (SEC) is reportedly encouraging eligible employees to resign or retire, offering financial incentives of up to $50,000 as part of a broader restructuring effort. This move comes amid a wave of staffing changes within the regulator, signaling a potential shift in its approach to  crypto enforcement.

According to a March 4 Bloomberg report, the SEC sent an internal email outlining the “voluntary separation incentive” or “voluntary early retirement program.” The memo, dated February 28, was issued by SEC Chief Operating Officer Ken Johnson, inviting employees to apply for the incentive by March 21.

To qualify, employees must have been on the SEC payroll before January 24 and must voluntarily exit the agency through resignation, transfer, or retirement. The memo also specifies that those who accept the incentive cannot return to the SEC for at least five years, or they must repay the entire bonus.

Federal Workforce Faces Restructuring

The SEC’s voluntary resignation program aligns with a broader effort by the Trump administration’s Department of Government Efficiency (DOGE), led by Elon Musk, to downsize federal agencies. According to Reuters, DOGE has already cut more than 100,000 positions across the 2.3 million-strong federal workforce through layoffs and buyouts.

The SEC has not provided an official reason for the staff reductions, but speculation is growing that the regulator is shifting its focus away from aggressive enforcement. In early February, reports emerged that the SEC was scaling back its 50-member crypto enforcement unit. Commissioner Hester Peirce also outlined a revised regulatory approach, suggesting a more balanced assessment of whether cryptocurrencies should be classified as securities.

Crypto Industry Sees Regulatory Softening

The SEC’s staffing shake-up coincides with significant changes in its legal actions against the crypto industry. In recent weeks, the regulator has dropped lawsuits against several major crypto firms, including Coinbase, Consensys, Robinhood, Gemini, Uniswap, and Kraken. This suggests a softening stance on crypto regulation, a stark contrast to the aggressive enforcement actions seen over the past two years.

Meanwhile, the U.S. labor market remains in focus this week as investors anticipate key economic reports, including nonfarm payroll data, initial jobless claims, and the February Jobs Report. These indicators are expected to provide insight into the overall health of the economy and the potential impact of ongoing federal workforce reductions.