Damian Williams, the U.S. Attorney for the Southern District of New York, has announced his resignation effective Dec. 13, 2024. Williams, who has served in the role since 2021, oversaw several landmark cases, including the prosecution of former FTX CEO Sam Bankman-Fried and other key figures from FTX and Alameda Research. His departure raises significant questions about the future of crypto enforcement.

Appointed by President Joe Biden and confirmed by the Senate, Williams will pass the baton to Acting U.S. Attorney Edward Y. Kim. Speculation points to former SEC Chair Jay Clayton as a likely permanent successor, pending Senate confirmation. Clayton, a seasoned Wall Street figure, has represented firms like Goldman Sachs and recently served as an advisor to Fireblocks, a digital asset management firm.

The Southern District of New York has historically played a pivotal role in high-profile financial cases, including crypto-related investigations such as the OneCoin scam. Under Clayton’s potential leadership, the direction of crypto enforcement may shift significantly. Scott Hartman, a fraud task force official, recently hinted at scaling back the number of crypto cases, stirring speculation about a reduced focus on digital asset-related prosecutions.

Meanwhile, the office remains engaged in high-stakes cases. Former Celsius CEO Alex Mashinsky is set to stand trial on Jan. 28, 2025, a proceeding that may fall in a transitional period as the office adapts to new leadership.

With Clayton’s nomination pending, the crypto world waits to see how this leadership change will impact ongoing and future enforcement actions in an increasingly regulated industry.