According to reports, two lawyers from the US Securities and Exchange Commission (SEC) have stepped down following recent criticism aimed at the government agency. The resignations have raised concerns about the SEC's handling of cases, particularly in the cryptocurrency sector.

The lawyers' decision to resign came after a federal judge strongly criticized the SEC for what he deemed as a "gross abuse" of power in the Debt Box case. The SEC has been actively pursuing legal action against several crypto companies, including the popular platform Coinbase.

The report by Bloomberg sheds light on the recent events involving a judge in Utah taking a hard stance against the SEC for its alleged misuse of authority. The two lawyers who resigned have been identified as Michael Welsh and Joseph Watkins, with speculation that they were facing dismissal from the SEC before their departure.

In the case against Debt Box, the SEC has accused the company of defrauding investors of millions of dollars. However, the lawsuit faced setbacks when a court overturned asset freezes imposed on the company. The SEC has since admitted errors in the case and has moved to dismiss it.

Recent legal battles, such as the rejection of Grayscale's application for a Bitcoin ETF and the loss against Ripple in declaring XRP as a security, have put the SEC under scrutiny. The crypto industry believes the SEC's enforcement-focused approach to regulation is hindering progress and competitiveness with other major jurisdictions.

Ongoing court cases involving the SEC and various crypto companies, like Terraform Labs, Coinbase, and Binance, highlight the challenges faced by the agency in navigating the rapidly evolving digital asset landscape.