Trump Priortises Immigration Over Crypto

Enforcement in the cryptocurrency sector is set to decline as President-elect Donald Trump refocuses Justice Department and regulatory priorities, according to current and former senior government attorneys speaking at a New York conference hosted by the Practising Law Institute.

While crypto fraud cases will not be ignored, they will no longer be a top priority.

Financial fraud cases will still be pursued, but the new administration plans to shift resources toward areas like immigration enforcement, a cornerstone of Trump's campaign.

Scott Hartman, co-chief of the Securities and Commodities Task Force at the US Attorney’s Office in Manhattan, confirmed the office will scale back its focus on crypto-related crimes following significant convictions, including FTX founder Sam Bankman-Fried.

Speaking at the conference, Hartman emphasized that while crypto cases remain on the docket, fewer prosecutors are assigned to them compared to the aftermath of the 2022 "crypto winter," when digital asset prices plummeted.

He noted:

"We brought a lot of big cases in the wake of the crypto winter - there were a lot of important fraud cases to bring there. But we know our regulatory partners are very active in this space, and we don't have a lot of people."

Hartman noted that the Justice Department's priorities are ultimately shaped by the administration but underscored that his unit's financial fraud enforcement efforts are nonpartisan.

Currently, the Securities and Commodities Task Force comprises 16 prosecutors.

He added:

“I don't have a ton of people right now. I hope they don't trim it more.”

Steve Pelkin, a partner at Sullivan & Cromwell and former SEC enforcement head under Trump from 2017 to 2021, echoed these sentiments, highlighting the evolving focus within regulatory and enforcement agencies:

“There could be a reallocation of substantial resources to immigration enforcement. I would be surprised if that doesn't happen.”

Trump Promised to Sack Gensler But Latter's Term Ends July 2025

Hartman and Pelkin’s remarks follow President-elect Trump's announcement of plans to nominate Jay Clayton as the next US Attorney for Manhattan.

Clayton, who chaired the US Securities and Exchange Commission (SEC) during Trump's previous administration, pursued limited crypto cases compared to the more aggressive approach under current SEC Chair Gary Gensler.

Notably, Trump has campaigned on removing Gensler from his position.

While the SEC operates as an independent agency, making it beyond the direct authority of the president to remove its chair, Gensler's term is set to expire in July 2025.

Trump has not yet proposed a successor, leaving uncertainty about the SEC's future leadership and whether ongoing crypto enforcement efforts will continue under his administration.

Other Agencies Shifts Focus Too

The realignment of priorities is not limited to prosecutors.

The Commodity Futures Trading Commission (CFTC) is also expected to shift focus.

Since filing its first cryptocurrency case in 2015, the agency has seen crypto-related enforcement grow significantly, now comprising nearly half of its caseload, according to Ian McGinley, CFTC Enforcement Director, who spoke at the conference.

He added:

“I don't know if that trend will necessarily continue…To the extent there's fraud and manipulation in those markets, we'll continue to be active.”