According to Fox News, a US attorney has established a new task force to aggressively enforce federal law against sanctuary policies in certain states as of May 19, 2025. This increased federal intervention is expected to result in heightened regulatory scrutiny, including on financial service providers and fintech companies operating in these states. Crypto traders should note that legal uncertainty in blue states could lead to stricter compliance checks and potential operational disruptions for cryptocurrency exchanges and DeFi projects with exposure to these regions. Heightened enforcement may also affect OTC trading and cross-border transfers, prompting market participants to re-evaluate risk management strategies. (Source: Fox News, May 19, 2025)