The post The U.S. War on Crypto Isn’t Over appeared on BitcoinEthereumNews.com.

In the wake of the appointment of a U.S. crypto czar and the announcement of comprehensive crypto legislation, many believe the era of “regulation by enforcement” in the U.S. is over. But while the SEC and CFTC now have crypto-friendly chairmen, both state regulators and Attorneys General are poised to take their place as aggressive crypto enforcers. For years, the SEC’s aggressive “regulation by enforcement” approach stifled the growth of the crypto industry and caused many to call for a comprehensive regulatory framework that would put an end to the “war on crypto” once and for all. For this reason, many in the industry banded together to lend their support to pro-crypto candidates. That strategy bore fruit. Donald Trump was elected as the first president to tout his support for the crypto industry, despite his somewhat antagonistic stance towards crypto during his previous term. Since taking office, Trump appointed David Sacks as the nation’s first “Crypto Czar,” established a President’s Working Group on Digital Asset Markets and appointed interim SEC and CFTC Chairs that have already been expressing their support for the crypto industry. But those federal changes won’t end aggressive enforcement actions from state regulators who face public pressure to take action to reign in crypto. Many in the industry have already faced aggressive enforcement from regulators like the New York Department of Financial Services (NYDFS), which recently obtained a $37 million settlement from a crypto lending platform. Regulators like NYDFS were aggressive even when the SEC engaged in aggressive tactics against crypto, so when the SEC scales back its efforts, you can expect them to fill in the void. Other states are following New York’s lead. In late 2023, California enacted the Digital Financial Assets Law, which empowered its Department of Financial Protection and Innovation to license and…

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Filed under: News - @ February 27, 2025 3:18 am