As per a recent Reuters report, cryptocurrency enforcement is expected to decrease under President-elect Donald Trump, as his administration shifts Justice Department priorities toward areas like immigration enforcement, according to current and former government lawyers. At a Practising Law Institute conference, Scott Hartman of the U.S. Attorney’s Office in Manhattan said fewer resources will go toward crypto cases, despite past convictions like that of FTX founder Sam Bankman-Fried. Staffing in his unit has decreased since the 2022 “crypto winter,” with regulatory agencies now taking the lead on crypto fraud.

Trump plans to nominate former SEC chair Jay Clayton as U.S. attorney in Manhattan, replacing Biden appointee Damian Williams. Clayton, less aggressive on crypto regulation than current SEC chair Gary Gensler, oversaw limited cases during his previous term. Trump has said he will fire Gensler, leaving the future of major crypto litigation uncertain.

The Commodity Futures Trading Commission also signaled a possible shift in priorities, though fraud in digital markets will remain a focus. Outside of crypto, the Manhattan U.S. Attorney’s Office may allocate more resources to immigration enforcement, reflecting Trump’s campaign themes.

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Reuters