The US Attorney’s Office in Manhattan is reportedly shifting its approach to crypto crime enforcement, allocating “fewer resources” to this area following a series of serious convictions, including that of FTX founder Sam Bankman-Fried.

Southern District Of Latest York To Scale Back Crypto Prosecutions

Scott Hartman, co-chief of the securities and commodities task force on the Southern District of Latest York (SDNY), announced this at a conference hosted by the Practicing Law Institute in Latest York.

Hartman noted that while the office will proceed to deal with cryptocurrency cases, the variety of prosecutors dedicated to those issues has diminished because the collapse of digital asset prices in 2022.

The prosecutor emphasized that the SDNY is not going to completely abandon crypto-related prosecutions but indicated a notable decline in cases moving forward. “You won’t see as much crypto stuff coming out of a minimum of the SDNY in the long run,” he stated.

Former SEC Chair Clayton Takes Office As US Attorney

The choice comes shortly after President-elect Donald Trump appointed Jay Clayton, the previous chair of the US Securities and Exchange Commission (SEC), as the brand new US attorney for the Southern District of Latest York. 

Clayton held his position during Trump’s first term, from 2017 to 2021, and was known for pursuing some cryptocurrency-related cases, albeit with less intensity than the present SEC chair, Gary Gensler, who has taken a more aggressive stance on regulating the industry.

On the time, Trump’s perspective on the industry was also significantly different from the views he expressed during his current presidential campaign leading as much as his election on November 5. 

Previously, Trump had expressed skepticism toward digital assets, particularly targeting Bitcoin (BTC), which he labeled a “scam” and criticized for being “highly volatile and based on thin air.”

The President-elect has committed to implementing substantial changes within the country’s approach to crypto. He has promised to finish the present “war on crypto” and proposed initiatives similar to designating Bitcoin as a strategic reserve asset for the US to cut back the nation’s $36 trillion debt.

Nevertheless, Scott Hartman acknowledged that the SDNY has actively pursued significant fraud cases throughout the 2021 crypto winter. Yet, he emphasized that other regulatory agencies, similar to the SEC and the Commodity Futures Trading Commission (CFTC), oversee the sector.

President Trump has hinted at potential changes in SEC leadership, stating his intention to fireplace the agency’s Gary Gensler, on the primary day of his recent administration, which begins on January 20.

Overall, there may be optimism amongst investors within the digital asset ecosystem because the incoming administration is poised to be a catalyst for further adoption and growth of digital assets, with the promise of latest regulatory frameworks. 

Featured image from DALL-E, chart from TradingView.com