Manhattan Prosecutors Revise Crypto Crime Tactics After Trump’s Latest Appointment

by

As an analyst with over two decades of experience in the financial industry, I have witnessed countless shifts in regulatory policies and enforcement priorities. The recent announcement by the Southern District of New York (SDNY) to scale back crypto prosecutions caught my attention, especially considering the appointment of Jay Clayton as the new US attorney for the district.

It appears the U.S. Attorney’s Office in Manhattan might be modifying its strategy towards cryptocurrency criminal investigations. This adjustment could involve dedicating fewer resources to this sector, possibly due to a string of notable convictions such as that of Sam Bankman-Fried, the founder of FTX.

Southern District Of New York To Scale Back Crypto Prosecutions

At a gathering organized by the Practicing Law Institute in New York, Scott Hartman, who shares the role of chief for the securities and commodities unit at the Southern District of New York (SDNY), made an announcement.

Hartman pointed out that although the office intends to keep handling cryptocurrency-related matters, there’s been a decrease in the number of prosecutors focused on such cases since the fall of digital asset values in 2022.

The prosecutor underscored that while the Southern District of New York (SDNY) is unlikely to cease pursuing cryptocurrency-related investigations entirely, there may be a significant reduction in such cases being brought forward in the near future. He simply expressed this by saying, “You’re not going to see as many crypto-related cases coming out of the SDNY in the future.

Former SEC Chair Clayton Takes Office As US Attorney

Following Donald Trump’s appointment as the new U.S. Attorney for the Southern District of New York, the decision was made not long after he selected Jay Clayton, a former chair of the United States Securities and Exchange Commission (SEC), for this position.

During Trump’s first term (2017-2021), Clayton maintained his role, and he was recognized for handling some cryptocurrency-related cases, although not as forcefully as the current SEC chair, Gary Gensler, who has adopted a more assertive approach towards regulating this sector.

During that period, my analysis revealed a stark contrast between Donald Trump’s industry viewpoints and the stance he adopted during his presidential campaign prior to his inauguration on November 5th.

Earlier, Trump showed hesitance towards digital currencies, with a particular focus on Bitcoin (BTC). He characterized it as a “fraud” and criticized its instability, stating that it is largely unsupported and appears to be created out of nothing.

As a crypto investor, I’m excited about the President-elect’s commitment to rethinking our country’s stance towards digital currencies. He’s vowed to put an end to the ongoing battle against crypto and has proposed some intriguing ideas, like designating Bitcoin as a strategic reserve asset for the US. This could potentially help us tackle our massive $36 trillion debt burden.

As a crypto investor, I can’t help but notice the relentless pursuit of fraud cases by the SDNY during the 2021 crypto winter. However, Scott Hartman made it clear that while they are actively involved, it’s important to remember that other regulatory bodies like the SEC and the Commodity Futures Trading Commission (CFTC) also oversee our sector.

It’s been suggested that President Trump may make changes in the leadership of the Securities and Exchange Commission (SEC), indicating his plan to dismiss Gary Gensler from his position when his new term commences on January 20th.

Generally, there’s a sense of excitement amongst investors within the digital assets sector because the upcoming administration is expected to boost the widespread use and expansion of digital assets, potentially by introducing fresh regulatory guidelines.

Read More

2024-11-16 21:12