The US Attorney’s Office in Manhattan is reportedly changing its approach to enforcing cryptocurrency crimes, allocating “less resources” to the area after a series of high-profile convictions, including one… FTX Founder Sam Bankman Fried.
The Southern District of New York scales back cryptocurrency prosecutions
Scott Hartman, Co-Chair of the Securities and Commodities Task Force for the Southern District of New York (SDNY), Announce this At a conference hosted by the Institute for the Practice of Law in New York.
Hartman noted that while the office will continue to handle cryptocurrency cases, the number of prosecutors assigned to these cases has dwindled since the collapse of digital asset prices in 2022.
The Attorney General stressed that SDNY will not completely abandon crypto-related matters Prosecutions But he noted a significant decline in cases moving forward. “You won’t see a lot of encrypted stuff coming out of SDNY, at least in the future,” he said.
Former SEC Chairman Clayton takes over as US Attorney General
This decision comes shortly after President-elect Donald Trump appointed Jay Clayton, former head of the US Securities and Exchange Commission (SEC), as the new US Attorney for the Southern District of New York.
Clayton held office during Trump’s first term, from 2017 to 2021, and was known for pursuing some cryptocurrency-related issues, albeit less intensely than current SEC Chairman Gary Gensler, who has taken a more aggressive stance on regulating the industry.
At the time, Trump’s perspective on the industry was also significantly different from the views he expressed during his current presidential campaign leading up to his election on November 5.
Before, it was Trump Express He is skeptical of digital assets, particularly targeting Bitcoin (BTC), which he called a “scam” and criticized for being “highly volatile and based on nothing.”
The president-elect has committed to implementing fundamental changes in the country’s approach to cryptocurrencies. He has promised to end the current “war on cryptocurrencies” and proposed initiatives such as taxonomy Bitcoin as a strategic reserve asset For the United States to reduce the country’s $36 trillion debt.
However, Scott Hartman acknowledged that the New York City court had actively pursued major fraud cases during the cryptocurrency winter of 2021. However, he emphasized that other Regulatory agenciessuch as the Securities and Exchange Commission and the Commodity Futures Trading Commission (CFTC), oversee this sector.
President Trump has hinted at possible changes in the leadership of the Securities and Exchange Commission, stating his intention to fire the agency Gary GenslerOn the first day of his new administration, which begins on January 20.
Overall, there is optimism among investors in the digital assets ecosystem as the incoming administration is poised to be a catalyst for further adoption and growth of digital assets, with the promise of new regulatory frameworks.
Featured image of DALL-E, chart from TradingView.com