Caroline Pham, acting chair of the US Commodity Futures Trading Commission (CFTC), announced that the agency would be winding down its practice of regulation by enforcement, likely impacting its approach to crypto firms during the Trump administration.

The Commodity Futures Trading Commission's enforcement division will end the practice of "regulation by enforcement," according to Acting Chair Caroline Pham.

The CFTC has restructured its enforcement division into two streamlined task forces, marking an end to the "regulation by enforcement" approach and shifting focus to fraud prevention.

The U.S. Commodity Futures Trading Commission will reorganize its Division of Enforcement's task forces to end "regulation by enforcement" and instead focus on combating fraud and helping victims, CFTC's acting chairman said on Tuesday.