Less enforcement in the cryptocurrency sector seems likely as President-elect Donald Trump prepares to shift priorities at the Justice Department and regulatory agencies. Speaking at a conference, senior government lawyers highlighted that while financial fraud cases will still be pursued, the new administration will focus more on areas like immigration enforcement, which was a key part of Trump's campaign. Scott Hartman, co-chief of the U.S. Attorney's Office in Manhattan's securities and commodities task force, noted that fewer resources will be dedicated to crypto crimes compared to the intense period following the "crypto winter" in 2022. The office still plans to pursue cryptocurrency cases but has fewer prosecutors available for such efforts. Jay Clayton, former SEC chair under Trump's first term, is poised to be the new U.S. Attorney in Manhattan, replacing Biden appointee Damian Williams. Clayton's record shows a more moderate approach to crypto enforcement compared to current SEC chair Gary Gensler, who has aggressively targeted large crypto firms like Coinbase and Binance for failing to register. The Commodity Futures Trading Commission (CFTC), which oversees crypto alongside traditional commodities, indicated it may scale back as well. CFTC enforcement director Ian McGinley emphasized that while they will remain active where fraud is involved, it is uncertain if the recent focus on digital assets will continue. Beyond crypto, the Justice Department's overall priorities may pivot significantly, with a potential reallocation of resources towards immigration enforcement. This shift may impact the number of prosecutors available for tackling financial fraud. Market Impact: The reduced focus on cryptocurrency enforcement under the incoming administration is likely to provide a significant boost to the crypto market. With fewer regulatory hurdles and diminished threat of enforcement actions, the sector could see renewed investor confidence and an uptick in activity. Major players in the market, such as exchanges and other crypto firms, may find it easier to operate without the looming pressure of aggressive regulatory scrutiny. This could potentially lead to a rally in digital asset prices as the perception of regulatory risk decreases. #Cryptocurrency #BTC #SEC