Republican President-elect Donald Trump’s campaign promises of easing cryptocurrency enforcement are expected to take shape as he resets policies at the Justice Department and regulatory agencies. Current and former government lawyers shared these insights during a New York conference on Friday.
Crypto Fraud Enforcement: Reduced Priority
While crypto fraud cases won’t be overlooked entirely, they are likely to lose their status as a top priority. Government agencies are expected to redirect their focus to other issues, including immigration law enforcement—another key element of Trump’s campaign.
Scott Hartman, co-chief of the securities and commodities task force at the U.S. Attorney’s Office in Manhattan, highlighted a potential reduction in resources allocated to crypto-related crimes. With 16 prosecutors currently in the task force, Hartman noted, “I don’t have a ton of people right now. I hope they don’t trim it more.”
Reallocation of Resources
Steve Pelkin, a partner at Sullivan & Cromwell and former SEC enforcement head during Trump’s first term, suggested that significant resources could shift toward immigration enforcement. “I would be surprised if that doesn’t happen,” Pelkin remarked.
This potential shift comes as Trump announced plans to nominate Jay Clayton, who led the SEC during his first term, as the new U.S. attorney in Manhattan. Under Clayton’s previous leadership, the SEC pursued fewer cryptocurrency cases compared to the aggressive approach of the current chair, Gary Gensler.
SEC Leadership and Pending Cases
One of Trump’s campaign promises involves firing Gensler, although the SEC chair’s independence limits his ability to do so. Gensler’s term ends in July 2025, leaving Trump to propose a new candidate for the role.
The SEC is currently involved in high-profile lawsuits against major crypto firms like Coinbase and Binance. Whether these cases will continue under a new leadership remains uncertain.
The CFTC’s Changing Role
The Commodity Futures Trading Commission (CFTC) is also expected to align with the administration’s broader policy shifts. Ian McGinley, the agency’s enforcement director, noted that nearly half of the CFTC’s docket currently involves crypto-related cases. However, McGinley added, “I don’t know if that trend will necessarily continue…To the extent there’s fraud and manipulation in those markets, we’ll continue to be active.”
Conclusion
As Trump prepares to take office, his administration’s stance on cryptocurrency enforcement is set to undergo notable changes. A shift in priorities could impact the SEC, CFTC, and other agencies, potentially leading to a less aggressive approach toward crypto-related cases. These adjustments will likely redefine the regulatory landscape for the cryptocurrency industry in the years to come.
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