Caroline Pham, acting chair of the US Commodity Futures Trading Commission (CFTC), announced a shift away from regulation by enforcement, particularly affecting its regulatory stance towards crypto firms. In a notice on February 4, the CFTC indicated that it would restructure its Division of Enforcement to focus on two task forces: one targeting retail fraud and violations of the Commodity Exchange Act, and another focusing on complex fraud and market manipulation. Pham stated that this realignment would allow the commission to concentrate on matters that uphold market integrity and deliver justice for victims. This strategic change comes as Pham assumes leadership following former chair Rostin Behnam’s exit, with President Trump expected to nominate Behnam’s replacement shortly. The ongoing revisions in regulatory approaches coincide with similar shifts at the Securities and Exchange Commission (SEC), which is also developing a framework for digital assets under temporary leadership. Pham is scheduled to hold roundtable discussions to seek input from industry stakeholders regarding market issues, including digital assets.

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