The U.S. Attorney’s Office for the Southern District of New York is set to reduce its focus on cryptocurrency-related litigation in line with the Trump administration's new priorities.
Shifts in Prosecutorial Priorities
Scott Hartman, Co-Director of the Securities and Commodities Fraud Task Force, confirmed this shift in a recent meeting of the Practical Law Society. Hartman noted that 'during the crypto winter, we tackled major fraud cases, but with limited resources, we need to redirect our focus.'
Impact on Regulatory Initiatives
The Trump administration is expected to create more favorable conditions for the development of the cryptocurrency sector, including potential legislative changes and reduced enforcement actions by regulatory bodies. Financial institutions may gain greater regulatory clarity to expand their roles in cryptocurrency custody and services.
Future of Cryptocurrency Regulation
One of the most closely watched legislative proposals is the 'Bitcoin Act of 2024,' introduced by Congresswoman Cynthia Lummis, which envisions the U.S. acquiring one million Bitcoin as part of its reserves. This could elevate Bitcoin to the status of a global reserve currency. However, the bill faces significant political hurdles, requiring 60 Senate votes to pass, while Republicans hold only 53 seats.
The changes in prosecutorial and legislative priorities under the Trump administration might herald a new era in regulation and law enforcement, focused on supporting innovation and reassessing resource allocation.
