Shift

Celsius

Chair

Change

Clayton

<ul>
 <li>New York prosecutors under Trump aim to reduce resources allocated to cryptocurrency-related lawsuits.</li>
 <li>Trump’s administration shifts focus towards combating illegal immigration, impacting priorities in financial crime enforcement.</li>
</ul>
The Southern District of New York’s U.S. Attorney’s Office is set to reduce its focus on cryptocurrency-related litigation, aligning with broader enforcement priorities under the <a href="https://www.ethnews.com/president-elect-trump-considers-replacing-gensler-with-crypto-friendly-candidates-to-foster-a-favorable-environment-for-digital-assets/" rel="noopener noreferrer nofollow">Trump</a> administration.
According to a report by Reuters, Scott Hartman, Co-Director of the Securities and Commodities Fraud Task Force, confirmed this shift during a recent meeting of the Practical Law Society.
Hartman highlighted that while the
<blockquote>
 “crypto winter”
</blockquote>
of recent years saw a surge in high-profile fraud cases, resource constraints are prompting a realignment of priorities.
<blockquote>
 “During the crypto winter, we tackled significant fraud cases, but regulatory agencies collaborating with authorities in this space are very active. With limited resources, we need to redirect our focus,”
</blockquote>
Hartman stated.
This strategic shift comes amid the anticipated reorganization of the Department of Justice (DOJ) under President <a href="https://www.ethnews.com/turn-250-into-1-million-by-2025-with-these-high-growth-altcoins-on-trump-inauguration-hype-2/" rel="noopener noreferrer nofollow">Donald Trump</a>, who campaigned on prioritizing immigration enforcement.
Combatting illegal immigration was a cornerstone of Trump’s policy agenda, suggesting that DOJ resources may be reallocated to align with these goals.
The Southern District of New York, long known for its aggressive pursuit of financial crimes, had been at the forefront of investigating cryptocurrency-related cases.
High-profile legal actions in the crypto space included cases against former FTX CEO Sam Bankman-Fried and Celsius founder Alex Mashinsky. However, the pivot in priorities suggests a potential scaling back of these efforts.
<h2 id="regulatory-and-legislative-winds-of-change">Regulatory and Legislative Winds of Change</h2>
The Trump administration is expected to create a more favorable environment for cryptocurrency development, including potential advancements in legislative frameworks and reduced enforcement actions by regulatory bodies like the SEC.
Financial institutions may also gain greater regulatory clarity to expand their roles in cryptocurrency custody and services.
Adding to this dynamic is the nomination of Jay Clayton, former SEC Chair, as the federal prosecutor for the Southern District of New York. Clayton’s tenure as SEC Chair from 2017 to 2020 was marked by a stringent stance on crypto, including the denial of cryptocurrency ETF applications.
However, since leaving the SEC, Clayton has softened his approach, advocating for Bitcoin spot ETFs and emphasizing the broader potential of blockchain technology.
One of the most closely watched legislative proposals is the “Bitcoin Act of 2024,” introduced by Congresswoman <a href="https://www.ethnews.com/crypto-champion-senator-lummis-battles-overreach-heres-the-scoop/" rel="noopener noreferrer nofollow">Cynthia Lummis</a>. The act envisions the U.S. acquiring one million Bitcoin as part of its reserves, potentially elevating 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.
This shifting landscape under the Trump administration could herald a new era for cryptocurrency regulation and enforcement, with a greater emphasis on fostering innovation and reevaluating resource allocation.
The post <a href="https://www.ethnews.com/new-york-prosecutors-shift-focus-away-from-crypto-under-trump-administration/" rel="noopener noreferrer nofollow">New York Prosecutors Shift Focus Away from Crypto Under Trump Administration</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.

New York Prosecutors Shift Focus Away from Crypto Under Trump Administration

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