As President-elect Donald Trump prepares to take office, the Manhattan U.S. Attorney's Office is shifting its priorities, reducing its focus on crypto cases to enhance immigration enforcement.
New Priorities for Manhattan Prosecutors
The U.S. Attorney’s Office in Manhattan, known for its financial crime cases, will allocate fewer resources to cryptocurrency-related cases. This decision was confirmed by Scott Hartman, co-chief of the securities at a conference in New York. “We brought a lot of big cases in the wake of the crypto winter of 2022,” Hartman noted. “But we know our regulatory partners are very active in this space, and we don’t have a lot of people.”
Jay Clayton's Appointment as U.S. Attorney
President-elect Trump has announced plans to appoint former SEC Chair Jay Clayton as U.S. Attorney in Manhattan, replacing Damian Williams. Clayton, who led the SEC during Trump's first term, was less aggressive in pursuing crypto cases compared to current SEC Chair Gary Gensler. Trump has also signaled his intention to replace Gensler with a more crypto-friendly SEC Chair, raising questions about the future of ongoing cases against large digital asset companies. Many in the cryptocurrency industry have criticized Gensler for his strict regulation and enforcement actions, which they believe have stifled innovation.
CFTC's Role in Crypto Regulation
The Commodity Futures Trading Commission (CFTC), which oversees derivatives and other financial markets, has seen its docket of crypto-related cases grow significantly. However, Ian McGinley, the agency's enforcement director, acknowledged that this trend might change under the new administration. “To the extent there’s fraud and manipulation in those markets, we’ll continue to be active,” McGinley emphasized, underscoring the agency's commitment despite potential shifts in focus.
The reduced focus on cryptocurrency enforcement may signal a potential reprieve for the industry. However, financial fraud and manipulation cases will still be pursued with fewer resources. The appointment of Jay Clayton and potential changes at the SEC could significantly alter the landscape of cryptocurrency regulation in the future.
