Prominent U.S. Prosecutor’s Office to Shift Focus Away from Crypto Cases: Report

According to conor Devitt, November 16, 2024 

The U.S. Attorney’s Office for the Southern District of New York (SDNY), known for its aggressive stance on cryptocurrency cases, reportedly plans to scale back its focus on the sector as Donald Trump prepares to return to the White House.

On Thursday, Trump announced via Truth Social his intention to nominate Jay Clayton as the U.S. Attorney for the SDNY. Clayton, who led the Securities and Exchange Commission (SEC) during Trump’s previous administration, has recently expressed more crypto-friendly views.

Scott Hartman, co-chief of the Securities and Commodities Fraud Task Force at SDNY, shared insights during a conference this week, according to Reuters. Hartman emphasized that while crypto-related cases won’t be ignored, fewer prosecutors will be dedicated to them.

“We brought a lot of big cases in the wake of the crypto winter—there were significant fraud cases to address—but we recognize that our regulatory partners are very active in this space,” Hartman said.

Under Damian Williams, the current U.S. Attorney for SDNY, the office has pursued high-profile crypto prosecutions, including those against Sam Bankman-Fried and FTX.

Trump’s approach to cryptocurrency has evolved since his first term, during which he was critical of Bitcoin and digital assets. Over the past year, he has positioned himself as a proponent of the crypto sector while campaigning for the presidency.

At campaign events, Trump pledged to fire SEC Chair Gary Gensler on his first day in office and roll back policies that he claims stifle innovation in the crypto industry. He also proposed halting the government’s practice of selling seized Bitcoin, suggesting instead that the U.S. hold the asset strategically as an investment.