Manhattan US Attorney’s Office to Limit Crypto cases
- Manhattan U.S. Attorney’s Office plans to reduce focus on crypto cases and prioritize immigration enforcement.
- Former SEC Chair Jay Clayton is set to become Manhattan U.S. Attorney, possibly changing crypto regulations.
The U.S. is made an important move in its enforcement priorities as President-elect Donald Trump prepares to take office. Current and former government lawyers have indicated that the Justice Department will focus from cryptocurrency related crimes. That are immigration enforcement as Trump’s campaign promises.
Manhattan Prosecutors to limit Crypto Cases.
The U.S. Attorney’s Office in Manhattan, a place for high financial crime cases and crypto cases. Will allocate fewer resources to cryptocurrency enforcement. Scott Hartman, co-chief of the securities confirmed the decision during a conference hosted by the Practising Law Institute in New York.
“We brought a lot of big cases in the wake of the crypto winter there were a lot of important fraud cases to bring there.” Hartman said, referencing the 2022 collapse in digital asset prices. “But we know our regulatory partners are very active in this space, and we don’t have a lot of people.”
The Manhattan office previously secured high-profile convictions, including that of FTX founder Sam Bankman-Fried. However, the number of prosecutors handling crypto cases has decreased.
Jay Clayton Nominated as Manhattan U.S. Attorney
President-elect Trump has announced plans to nominate former SEC Chair Jay Clayton to replace Damian Williams as U.S. Attorney in Manhattan. Clayton, who led the SEC during Trump’s first term, was less aggressive in pursuing crypto cases compared to current SEC Chair Gary Gensler.
While Clayton handled some crypto-related cases during his SEC tenure, the industry was smaller at the time. In contrast, Gensler has actively pursued major crypto firms like Coinbase and Binance for failing to register with the SEC.
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 what they view as overly strict regulations and enforcement actions that stifled innovation.
Steve Peikin, former SEC enforcement head under Clayton. Suggested that immigration enforcement could see a major role under Trump’s Justice Department. “There could be a reallocation of substantial resources to immigration enforcement,” Peikin noted.
This reflects Trump’s broader strategy to address immigration issues more aggressively, which may come at the expense of resources allocated to financial crimes and cryptocurrency-related enforcement.
CFTC’s Role in Crypto Regulation
The Commodity Futures Trading Commission (CFTC) , which oversees derivatives and other financial markets, has seen its crypto-related docket grow to nearly half of its Crypto cases in recent years. However, Ian McGinley, the agency’s enforcement director, acknowledged that the trend may not continue under the new administration.
“To the extent there’s fraud and manipulation in those markets, we’ll continue to be active,” McGinley said, underscoring the agency’s commitment despite potential shifts in focus.
As Trump prepares to reshape the Justice Department, the reduced stress on cryptocurrency enforcement signals a potential reprieve for the industry. However, financial fraud and manipulation Crypto cases will still be pursued with fewer resources.
With the appointment of Jay Clayton as Manhattan U.S. Attorney and potential changes at the SEC, the landscape for cryptocurrency regulation could change majorly.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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