Key Takeaways
- Bitcoin enforcement to decrease as Trump shifts focus to immigration.
- Regulators like the SEC and CFTC may deprioritize Bitcoin cases.
- Pending cases against Coinbase and Binance face uncertainty under new leadership.
The U.S. Attorney’s Office in Manhattan plans to allocate fewer resources to Bitcoin-related crimes under President-elect Donald Trump, according to remarks made at a New York conference.
Scott Hartman, co-chief of the Securities and Commodities Task Force, noted that his team of 16 prosecutors is likely to shrink further.
Hartman, expressing concern over potential cuts, stated:
I don’t have a ton of people right now.
This shift aligns with Trump’s campaign promises, which included reducing cryptocurrency enforcement in favor of immigration-focused initiatives.
Impact on key agencies
The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are also expected to realign priorities.
Steve Pelkin, a partner at Sullivan & Cromwell and former SEC enforcement head, predicted significant resource reallocation.
Ian McGinley, CFTC enforcement director, noted that while crypto cases account for nearly half of the agency’s docket, he doubts the trend will continue, though fraud and manipulation cases will remain active.
SEC leadership and pending cases
Trump’s nomination of Jay Clayton, a former SEC chair under his previous administration, as U.S. Attorney in Manhattan signals a potential return to less aggressive crypto enforcement.
The SEC is currently engaged in major cases against Coinbase and Binance, but leadership changes could influence their trajectory.
Trump’s campaign promises to remove current SEC Chair Gary Gensler may also alter enforcement approaches, though Gensler’s term ends in July 2025.
