American Regulator Warns of &#039, Horror Scenarios&#039, From Trump Easing Crypto Oversight

Australia’s customer regulator is sounding the alarm over U. S. President Donald Trump easing bitcoin regulations, fearing a possible increase in investment scams targeting American consumers.

Australian Competition and Consumer Commission (ACCC ) Chair Gina Cass-Gottlieb warned that Trump’s pledge to ease crypto oversight in the U.S. could lead to “horror scenarios” for vulnerable investors as he moves forward with his vision to make the U.S. the” crypto capital of the world.”

Any easing of such legislation, according to Cass-Gottlieb, is concerning to us, adding that a rise in global bitcoin crime combined with the easing of crypto regulations may raise risks for consumers.

” This is an environment—because of the class of international crime, and also because possibly of regulatory’ freeing up ‘—that we certainly have an increased problem”, Cass-Gottlieb said.

The ACCC chairman’s concerns come as the most recent company data reveal that in Australia, over$ 1.3 billion was lost to investment schemes in 2023, with crypto being directly or indirectly involved in the bulk of these scams.

Trump’s bitcoin position

Following sweeping election campaign promises, President Trump has dramatically changed his stance on blockchain. He is presently positioning himself as a powerful advocate for the business.

Even though he side-stepped crypto-related commands on time one of his Presidency, the country is now moving forward with pro-crypto guidelines, with plans to introduce a markets construction costs and a cryptocurrency costs, as per latest reports.

The U.S. President has established a working team under the leadership of White House AI and Crypto Czar David Sacks, whose goal is to influence the direction of crypto legislation in the U.S., which might be beneficial to the field.

Trump’s administration has also vowed to reduce regulatory burdens, with the U. S. Securities and Commission’s ( SEC ) controversial&nbsp, SAB 121 rule rescinded under the guidance of Commissioner Hester Pierce, head of the agency’s new crypto task force.

He also hired pro-crypto leaders Paul Atkins as Gary Gensler’s replacement because the author’s aggressive approach to crypto created space nightmares.

The President has also appointed Mark Uyeda, a previous director known for his crypto-friendly position, as acting head. The SEC is now recognizing altcoin-based Stocks and easing its position on lawsuits against blockchain giant like Binance and Coinbase under his command.

While Trump’s subsequent steps have been applauded in the U. S. crypto field, Australia maintains stricter regulations to protect its customers.

Through the INFO-225 consultation paper, the Australian government is developing a new bill to more effectively regulate digital asset intermediaries, aiming to establish a regulatory framework by year-end that fosters innovation while ensuring consumer protection.

With its Digital Assets Lead, Rhys Bollen, comparing Bitcoin to” cigarettes used as currency in prisons,” the Australian Securities and Investments Commission ( ASIC ) has been particularly vocal about the potential risks at a meeting to discuss new regulations.

Moreover, AUSTRAC ( the Australian Transaction Reports and Analysis Centre ) is also taking action against non-compliant firms in the crypto sector.

The agency’s recent crackdown on 13 firms for failing to meet anti-money laundering requirements has sent a clear message about the government’s commitment to curbing crypto-related crime.