Crypto Enforcement Deprioritized Under Trump as Immigration Takes Center Stage

The U.S. Attorney’s Office in Manhattan plans to reduce its focus on cryptocurrency-related crimes as the Justice Department shifts priorities under Donald Trump’s leadership, according to government lawyers speaking at a recent New York conference.

During his campaign, Republican President-elect Donald Trump pledged to relax enforcement of crypto regulations, a promise now poised to shape federal policy. While crypto fraud will not be entirely overlooked, it will no longer be a central focus. Instead, the administration is expected to prioritize immigration law enforcement, aligning with Trump’s broader campaign agenda.

Scott Hartman, co-chief of the securities and commodities task force at the Manhattan U.S. Attorney’s Office, confirmed that fewer resources would be allocated to prosecuting crypto cases. He noted that the task force, which includes 16 prosecutors, already operates with limited staff. “I don’t have a ton of people right now,” Hartman said, expressing concern over further potential cuts.

The shift in focus follows Trump’s announcement that he plans to nominate Jay Clayton, former U.S. Securities and Exchange Commission (SEC) chair under his previous administration, as the next U.S. Attorney in Manhattan. During Clayton’s tenure, the SEC pursued a limited number of crypto enforcement actions, a stark contrast to the more aggressive approach of the current chair, Gary Gensler.

Trump has also reiterated his campaign promise to remove Gensler from his position. However, as the SEC is an independent agency, the president lacks direct authority to dismiss its chair. Gensler’s term is set to expire in July 2025, leaving uncertainty about the agency’s leadership under the new administration.

The SEC’s ongoing lawsuits against major crypto firms such as Coinbase and Binance could also be impacted by this leadership shift, with some speculating that a change in direction may lead to fewer enforcement actions.

Similar realignments are expected at other regulatory agencies. Ian McGinley, director of enforcement at the Commodity Futures Trading Commission (CFTC), remarked that while crypto-related cases have grown to represent nearly half of the agency’s docket, resource allocation could change under Trump’s administration.

These developments suggest a significant pivot in regulatory and enforcement priorities as Trump’s administration takes shape, with immigration and other policy areas taking precedence over cryptocurrency oversight.