Catenaa, Thursday, November, 2024 –The United States may see a shift in cryptocurrency enforcement under the incoming administration of President-elect Donald Trump, with a reduction in legal action but a potential rise in regulatory measures.
Current and former senior government lawyers discussed these changes during a legal conference in New York. Scott Hartman, co-chief of the securities and commodities task force at the U.S. Attorney’s Office in Manhattan, indicated that fewer resources would be allocated to prosecuting cryptocurrency-related crimes. Instead, financial fraud cases may take a backseat to Trump’s campaign focus on immigration enforcement.
Trump has signaled plans to replace current SEC Chair Gary Gensler, whose tenure has been marked by aggressive actions against major cryptocurrency platforms like Coinbase and Binance. Jay Clayton, a former SEC chair known for a more lenient approach, is expected to be nominated as U.S. Attorney in Manhattan.
At the Commodity Futures Trading Commission (CFTC), digital assets have become a significant focus, accounting for nearly half of its cases last year.
The CFTC’s also suggested this emphasis might diminish under the Trump administration, except in cases involving fraud or market manipulation.
However, reflecting on recent cases like the conviction of FTX founder Sam Bankman-Fried, CFTC acknowledged the challenges posed by resource constraints.
The SEC’s “regulation-by-enforcement” strategy has faced backlash from industry players and policymakers.
A coalition of seven US states recently challenged the agency’s approach, citing a lack of a clear regulatory framework for cryptocurrencies.
With Trump’s administration poised to prioritize other enforcement areas, the crypto sector may experience reduced legal scrutiny but increased regulatory developments as policymakers push for more structured oversight.
