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.

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 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 CFTC is reportedly restructuring its enforcement division in a major overhaul that is expected to put to an end regulation by enforcement. This is also expected to restore market integrity, enabling the agency to utilize its resources to limit fraud,

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

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.

CFTC Acting Chair Caroline Pham appoints crypto expert Harry Jung as Chief of Staff. Leadership shakeup signals a potential shift in the crypto regulation approach.