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.
Trump’s vision for the U.S. "crypto capital of the world," Gina Cass Gottlieb, Chair of the Australian Competition and Consumer Commission(ACCC), warned him that his promises to relax crypto oversight could lead to a stifling environment. "horror scenarios" For investors who may be vulnerable.
Cass Gottlieb has told Australia about ABC News that, "Any weakening of such regulation is of concern for us," Additionally, a combination of a softer crypto regulation and escalating crypto crime in the world could raise 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.
ACCC’s chair expressed concern after the most recent figures showed that Australians had lost more than $1.3 billion in investment scams between 2023 and 2025, the vast majority of which involved crypto.
Trump’s Crypto stance
After making sweeping promises during his election campaign, President Trump has changed dramatically in the way he views crypto.
Even though the President did not make any orders related to crypto on his first official day in office, according to recent reports, the nation has now moved forward with crypto policies. Plans are underway for an introduction of a market structure bill as well as a stablecoin law.
The U.S. president has created a group headed by White House AI Czar David Sacks to help shape future crypto regulations in the U.S.
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has also vowed to reduce regulatory burdens, with the U.S. Securities and Commission’s (SEC) controversial SAB 121 rule rescinded under the guidance of Commissioner Hester Pierce, head of the agency’s new crypto task force.
The anti-crypto Gary Gensler’s aggressive attitude towards crypto was a nightmare in the industry. He hired Paul Atkins to replace him.
Mark Uyeda is also the acting chairman, appointed by President Obama. He was a former Commissioner known for his pro-crypto stance. He has led the SEC to accept altcoin-based exchange traded funds and ease its position on lawsuits filed against giants in crypto like Binance or Coinbase.
Australia’s regulations are stricter than those in the U.S. to protect their consumers.
The Australian government has been working to develop a new law to better regulate intermediaries of digital assets. This is being done through the INFO 225 consultation document. It aims to establish a regulatory structure by the year’s end that encourages innovation, while also protecting consumers.
Rhys Bollen is the Digital Assets Leader at ASIC. He has pointed out that there are many risks. Bitcoin to "cigarettes used as currency in prisons” during a meeting discussing new regulations.
AUSTRAC, the Australian Transaction Reports and Analysis Centre (AUSTRAC), is taking actions against firms that are not compliant in the crypto industry.
Recent crackdowns by the agency on 13 companies for not meeting anti-money-laundering requirements have sent a strong message regarding government commitment in curbing cryptocurrency-related crimes.