The U.S. government is expected to scale back its enforcement of the cryptocurrency industry under the new administration, according to senior government attorneys.
At a conference in New York on November 15, current and former officials indicated that while financial fraud cases would still be pursued, the Justice Department under President Trump is likely to focus more on immigration enforcement, a key campaign promise.
Scott Hartman, co-chief of the Securities and Commodities Task Force for the U.S. Attorney’s Office in Manhattan, said that fewer resources will be dedicated to prosecuting cryptocurrency-related crimes. This shift follows several high-profile convictions, including that of FTX founder Sam Bankman-Fried. Hartman emphasized that the office would not ignore crypto cases but would focus on other priorities, given the limited number of prosecutors available.
“We brought a lot of big cases after the crypto winter, when digital asset prices dropped,” Hartman explained. “But our regulatory partners are very active, and we just don’t have many people focused on crypto right now.”
Hartman’s comments came one day after Trump announced the nomination of Jay Clayton, former chair of the Securities and Exchange Commission (SEC), as his pick for the new U.S. attorney in Manhattan. Steve Peikin, who worked alongside Clayton at the SEC, described him as an excellent choice for the role. However, Peikin warned that the Justice Department’s overall priorities could shift.
“There will likely be a reallocation of significant resources toward immigration enforcement,” Peikin said. “I would be surprised if that didn’t happen.”
Trump’s victory in the 2024 election is seen as a positive development for the crypto sector. In response, the U.K. government has been working on new crypto legislation, particularly focused on stablecoins, and plans to exclude staking services from existing financial regulations.
“The U.K. has an opportunity to capitalize on this shift, but only if it can act quickly,” said Laura Navaratnam, U.K. policy lead at the Crypto Council for Innovation. “We are a bit ahead of where regulators initially expected.”
While Trump aims to make the U.S. a crypto hub, the U.K. is also positioning itself to attract digital asset companies. This includes a forthcoming consultation on stablecoins from the Financial Conduct Authority, set for early next year, followed by a gradual approach to regulating other crypto assets.
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