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 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.

The derivatives market regulator is reorganizing its enforcement division in a move it said will end the practice of regulation by enforcement.

According to the CFTC’s announcement, the new structure will “more efficiently utilize the CFTC’s resources to prevent fraud, manipulation and abuse and ensure market integrity” as well as “provide enhanced governance and oversight of enforcement matters to prevent overreach and enhance consistency, fairness and due process.”

The U.S. Commodity Futures Trading Commission (CFTC) is reshuffling its approach to enforcement, and consolidating the division’s array of task forces into just two.