Tenreiro, who has been with the SEC for over 11 years, played a leading role in high-profile enforcement actions against major crypto firms, including Ripple and Coinbase.

CFTC acting chair Caroline Pham said the financial regulator would “not punish good citizens” by regulating by enforcement.

The agency moved its key man driving actions under former chair Gary Gensler as new leadership works toward more constructive crypto regulation.

Jorge Tenreiro, the SEC’s top crypto hitman, just got pulled off the legal department. He’s now stuck in the agency’s IT ...