The US Securities and Exchange Commission (SEC) is reportedly offering eligible employees a $50,000 incentive to voluntarily resign or retire as part of a broader federal cost-cutting initiative under the Trump administration.
SEC Staff Offered Buyouts Amid Federal Downsizing
According to a March 4 Bloomberg report, the SEC sent an internal email on February 28 outlining a “voluntary separation incentive” or “voluntary early retirement program.” The offer, reportedly sent by SEC Chief Operating Officer Ken Johnson, gives eligible employees until March 21 to apply and requires them to leave the agency by April 4.
Key conditions include:
- Employees must have been on the SEC payroll before January 24.
- They must leave voluntarily through resignation, transfer to another agency, or retirement.
- If they return to the SEC within five years, they must repay the incentive in full.
This move aligns with the Department of Government Efficiency (DOGE) initiative, led by Elon Musk, which has resulted in the elimination of over 100,000 federal positions, according to Reuters.
Crypto Enforcement and Market Impact
The SEC has been undergoing major shifts, particularly within its crypto enforcement unit, which began scaling back in early February. Commissioner Hester Peirce recently outlined a new regulatory approach, focusing on evaluating the security status of digital assets.
Meanwhile, the SEC has dropped lawsuits against several major crypto firms in recent weeks, including:
- Coinbase
- Consensys
- Robinhood
- Gemini
- Uniswap
- Kraken
Economic and Labor Market Implications
The SEC’s buyout program comes as the US labor market faces increased scrutiny, with upcoming reports on nonfarm employment data, jobless claims, and the February Jobs Report. These economic indicators are closely watched for signals on the health of the economy, particularly as federal downsizing continues.
