Australian Regulator Warns of ‘Horror Scenarios’ From Trump Easing Crypto Oversight

Australia’s consumer watchdog is sounding the alarm over U.S. President Donald Trump easing crypto regulations, fearing a potential rise in investment scams targeting Australian consumers.

As Trump pushes forward with his vision to make the U.S. the “crypto capital of the world,” Australian Competition and Consumer Commission (ACCC) Chair Gina Cass-Gottlieb warned that his promise to ease crypto oversight in the U.S. could create “horror scenarios” for vulnerable investors.

Cass-Gottlieb told Australia’s ABC News that, “Any weakening of such regulation is of concern for us,” adding that easing of crypto regulations coupled with a rise in global crypto crime could increase risks for consumers.

“This is an environment—because of the sophistication of global crime, and also because potentially of regulatory ‘freeing up’—that we certainly have an enhanced concern,” Cass-Gottlieb said.

The ACCC chair’s concerns come as the latest figures from the agency show Australians lost over $1.3 billion to investment scams in 2023, with crypto either directly or indirectly involved in the majority of these scams.

Trump’s crypto stance

President Trump’s stance on crypto has shifted dramatically since his earlier skepticism, and he is now positioning himself as a strong advocate for the industry, following sweeping election campaign promises.

Even though he side-stepped crypto-related orders on day one of his Presidency, the nation is now moving forward with pro-crypto policies, with plans to introduce a markets structure bill and a stablecoin bill, as per latest reports.

Since he entered the White House, the U.S. President has launched a working group, headed by White House AI and Crypto Czar David Sacks, seeking to shape the future of crypto regulation in the U.S., potentially to benefit the sector.

Trump’s administration has also vowed to reduce regulatory burdens, with the U.S. Securities and Commission’s (SEC) controversial  SAB 121 rule rescinded under the guidance of Commissioner Hester Pierce, head of the agency’s new crypto task force.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 such as Paul Atkins as the successor of anti-crypto Gary Gensler, as the latter’s aggressive approach towards crypto caused nightmares in the space.

The President has also appointed Mark Uyeda, a former commissioner known for his crypto-friendly stance, as acting chair. Under his leadership, the SEC is already acknowledging altcoin-based ETFs and easing its stance on lawsuits against crypto giants like Binance and Coinbase.

While Trump’s recent actions have been applauded in the U.S. crypto scene, Australia maintains stricter regulations to protect its consumers.

The Australian government is working on a new bill to regulate digital asset intermediaries more effectively via the INFO-225 consultation paper, seeking to create a regulatory framework by year-end that fosters innovation while guaranteeing consumer protection.

The Australian Securities and Investments Commission (ASIC) has been particularly vocal about the potential risks, with its Digital Assets Lead, Rhys Bollen, comparing Bitcoin to “cigarettes used as currency in prisons” during a meeting discussing 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.