USA Trends and Developments Contributed by: Steven Molo, Robert Kry, Megan Cunniff Church and Walter Hawes, MoloLamken
cally appointed officials within the DOJ, faced considerable resistance from within the DOJ. At least seven federal prosecutors, including those leading the case, resigned in protest over the decision. Other anti-corruption actions involving politi - cians have followed a similar pattern. In one case, the DOJ moved to dismiss an indictment against Jeffrey Fortenberry, a former Republi - can member of the legislature, shortly after the Trump administration took office. Mr Fortenberry was originally charged and convicted in 2022 on three counts of lying to federal law enforcement officers regarding his knowledge of campaign finance violations that occurred during his cam - paign for elected office. While the original con - viction was vacated on the basis that he was charged in the wrong location, he was indicted on similar charges in Washington, D.C. in 2024. Several weeks into the Trump administration, however, federal prosecutors moved to dismiss the charges, a decision which President Trump praised. Prosecutors have also withdrawn from an investigation into Tennessee Congressman Andy Ogles for potential campaign finance vio - lations. Shifting Approach to Cryptocurrency The Trump administration has also announced a new regulatory approach to cryptocurrency and digital assets. Within days of taking office, President Trump signed an Executive Order establishing a working group of federal agen - cies, including the DOJ, SEC, and CFTC, among others, to “propose a Federal regulatory frame - work governing the issuance and operation of digital assets” . Over the last few years, digital assets have proven ripe for fraud and abuse. In 2024 alone, the SEC received thousands of tips relating to
digital asset fraud. More than a quarter of the whistle-blower complaints to the CFTC raised similar concerns. To date, however, no compre - hensive legal framework has been established to regulate cryptocurrency and related technology. Despite some bipartisan efforts, no legislation has been passed at the federal level regulating the sale, accounting, marketing, or transfer of digital assets. Instead, federal regulators have exercised ad hoc authority over certain aspects of digital assets primarily by applying pre-existing legal frameworks. For example, the SEC has taken a broad view of whether cryptocurrencies con - stitute “securities” subject to the registration, disclosure, and anti-fraud requirements of the federal securities laws. The CFTC has similarly adopted the position that many digital assets constitute “commodities” subject to its regula - tory and enforcement authority. Relying on those broad interpretations, federal prosecutors and regulators have instituted numerous enforce - ment actions against digital asset companies for registration and recordkeeping violations as well as fraud and market manipulation. President Trump’s Executive Order signals a stark departure from that regime. It suggests that the forthcoming framework will be more lenient than the existing patchwork of regulatory treatment. It calls for the promotion of digital assets and related technology throughout the United States economy. And it seeks to overcome longstand - ing obstacles that the cryptocurrency industry faces by announcing a policy goal to ensure the industry receives “fair and open access to bank- ing services.” The Order rescinded certain guidance and regu - lations relating to digital assets. It also required federal agencies to review all existing regulations
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