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Manhattan prosecutors soften crypto enforcement after high-profile wins

Manhattan prosecutors are reducing their focus on crypto crime enforcement, with fewer prosecutors assigned to such cases compared to previous years. This shift in priorities aligns with the arrival of Jay Clayton as Manhattan's new U.S. Attorney, who led the SEC from 2017 to 2021 and had a less aggressive approach towards cryptocurrencies compared to the current SEC Chair, Gary Gensler. The Trump administration's crypto-friendly stance has created optimism in the market, with experts predicting further gains in the price of Bitcoin and increased interest from retail investors. Crypto firms are hopeful that Trump's administration will clear the backlog of pending ETF applications and approve more crypto products. Meanwhile, Gensler, who is expected to step down, defends the SEC's approach, stating that it protects investors despite frustrating industry insiders.

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