Why U.S. Authorities Are Granting New Freedoms to the Crypto Industry
According to experts, U.S. authorities will grant new freedoms to the crypto industry in the future. The young industry will no longer be a primary focus of law enforcement. Instead, attention will shift to more pressing issues. This change is expected to take effect by January 20, 2025, when the new President, Donald Trump, takes office.
Why U.S. Authorities Are Granting New Freedoms to the Crypto Industry
U.S. authorities intend to provide the crypto industry with more freedoms, according to a report by Reuters. The report cites statements from both former and current government-affiliated lawyers.
During the Trump administration, the crypto industry will reportedly no longer be a focal point for U.S. law enforcement. Authorities will continue to address fraud cases in the industry but will otherwise devote less attention to it compared to the past.
The Manhattan District Attorney’s Office plans to allocate most of its staff to other areas of crime, such as illegal immigration.
This statement was made by Scott Hartman on Friday during a conference. Hartman currently works for the Manhattan DA’s office, serving as Deputy Chief of the Commodities and Securities Division.
“We handled many significant cases during the crypto winter,” Hartman said. “However, cryptocurrencies and the industry are receiving too much attention, even though there are more important issues for law enforcement to address.”
Trump has already appointed the new head of the Manhattan DA’s office. Jay Clayton, who led the SEC from 2017 to 2021 and initiated the pivotal lawsuit against Ripple in 2020, is set to assume the role under Trump.
Uncertainty in U.S. Regulatory Approach to Crypto
According to Reuters, the head of the CFTC (Commodity Futures Trading Commission) remains uncertain about the future of crypto. Due to the immense growth of the crypto industry, nearly half of the staff are now dealing with crypto issues, explained Ian McGinley on Friday at the Practising Law Institute conference in New York.
The regulatory agency officially employs 699 people. McGinley stated that it is unclear whether the CFTC’s focus will shift back to other areas or if it will increasingly concentrate on crypto.
What is certain, however, is that the CFTC will remain active in the crypto market as long as fraud and manipulation persist. Public records show that the CFTC has primarily dealt with clear-cut fraud cases so far.
In contrast, the SEC (Securities and Exchange Commission) has garnered more attention for its interventions in the crypto industry. The SEC has enforced particularly controversial regulations and imposed questionable penalties.
Presidential Influence on Crypto Regulation
At the conference, legal expert Steve Peikin emphasized the president’s authority to set certain priorities. Under Trump, the focus will reportedly shift to combating illegal immigration, which could lead to budget cuts in other areas.
Since Trump aims to promote substantial freedoms for the crypto industry, related budget reductions in this area could be significant.
Stay informed, read the latest updates now!
Deputy Chief Hartman expressed concerns about the forthcoming “DOGE Ministry,” which is rumored to be led by Elon Musk. The DOGE Ministry intends to significantly reduce the size of U.S. government agencies. Hartman, who currently oversees 16 employees, fears a reduction in his team.
