McDermott Will & Schulte, a global law firm

In November 2021, at the height of cryptocurrency’s “bull run,” the market capitalization for crypto reached a record of nearly $3 trillion. Just a year later, and shortly after FTX petitioned for Chapter 11 bankruptcy protection in November 2022, however, this value had plummeted by 75%. While there were many factors other than FTX’s collapse that led to this significant decline, FTX’s failure was a watershed moment for government enforcement efforts across the crypto industry.

This Special Report explores how the government has pursued crypto companies and individuals following the collapse of FTX and how those enforcement priorities may change and impact crypto’s future under the Trump administration starting January 2025. In particular, we analyze enforcement priorities that have emerged over the last two years since FTX, including actions related to (1) failure to register securities, (2) fraudulent offerings, (3) money laundering and mixers, and (4) market manipulation and liquidity pools. With the reelection of President-elect Donald J. Trump – who has signaled an intention to substantially reduce regulatory scrutiny over crypto – these enforcement priorities, and the governmental entities and units advancing them, will undoubtedly shift. After our analysis of each priority, we provide commentary on what to expect from the Trump administration going forward.