--- title: "Former CFTC Chair Backs White House Counter-Hacking Policy for Crypto Thieves" description: "Chris Giancarlo endorsed the administration's restricted contractor model, walking back his earlier proposal for aggressive privateering letters of marque." url: https://basisdesk.news/news/former-cftc-chair-backs-white-house-counter-hacking-policy published: 2026-10-28T00:11:20.168Z modified: 2026-10-28T00:11:20.168Z section: Regulation & Policy author: Basis Desk Newsroom (AI-generated, source-verified) sentiment: neutral tickers: [] tags: [cftc, cybersecurity, doj, white-house, hack-back, dhs] license: Quote with attribution to Basis Desk (basisdesk.news). Not financial advice. --- # Former CFTC Chair Backs White House Counter-Hacking Policy for Crypto Thieves Chris Giancarlo endorsed the administration's restricted contractor model, walking back his earlier proposal for aggressive privateering letters of marque. ## At a glance - **What happened:** Former CFTC Chair Chris Giancarlo backed the White House's restricted contractor-based plan to counter crypto hackers, retreating from his 2025 proposal for private letters of marque. - **Why it matters:** The federal framework prioritizes interagency oversight over broad private-sector offensive authorization, keeping conflict escalation decisions with the DOJ and DHS. - **Who is affected:** Vetted cybersecurity contractors, federal law enforcement agencies (DOJ and DHS), and victims of foreign non-state crypto theft. - **What's next:** The public publication of formal interagency operating procedures, which were due on Oct. 11 but had not appeared as of Oct. 27. - **Status:** guidance - **Primary source:** [Ex-CFTC Chair Calls White House Plan Letting Firms Hack Cybercriminals ‘Just About Right’](https://unchainedcrypto.com/ex-cftc-chair-calls-white-house-plan-letting-firms-hack-cybercriminals-just-about-right/) — unchainedcrypto.com ## Key points - Ex-CFTC Chair Chris Giancarlo praised the White House's Aug. 12 cyber memo, calling the contractor-led counter-hacking initiative "just about right." [1] - The administration rejected earlier proposals for broad letters of marque, requiring contractors to adhere to the Computer Fraud and Abuse Act. [1] - Authorized operations require written DOJ and DHS approval, an escrow or bond of at least $1 million, and exclude state-run hacking entities. [1] ## Editorial remark - **Context:** After the $1.4 billion Lazarus Group attack on Bybit in early 2025, industry figures pushed for private sector authorization to hack back and recover stolen crypto assets. - **Impact:** Cybersecurity contractors face tight operational guardrails, six-figure bonding conditions, and federal oversight instead of receiving sweeping statutory immunity. - **Watch:** The public release or implementation of formal DOJ and DHS operating procedures, which passed an initial Oct. 11 deadline without public disclosure. Former Commodity Futures Trading Commission Chairman Chris Giancarlo endorsed the White House's targeted cyber offensive policy, describing the administration's framework permitting authorized firms to counter-hack cybercriminals as "a very mature, thoughtful document" [1]. Speaking on an episode of the *Unchained* podcast recorded on Oct. 26, Giancarlo noted the approach strikes the proper balance by starting small, despite excluding broader privateering powers he previously advocated [1]. In February 2025, following a $1.4 billion hack on Bybit attributed to the Lazarus Group, Giancarlo and Bits + Bips co-host Chris Perkins proposed reviving historic letters of marque [1]. That initiative sought to allow US companies to claw back digital assets from entities sanctioned by the Office of Foreign Assets Control while receiving statutory immunity from domestic prosecution [1]. The concept was subsequently pitched during the White House Crypto Summit the following month [1]. ## Narrow Scoping and Agency Oversight The White House memo issued on Aug. 12 substantially diverged from Giancarlo's original privateer concept [1]. Rather than offering statutory immunity, the framework explicitly subjects participants to existing statutes such as the Computer Fraud and Abuse Act [1]. The program restricts counter-operations to vetted contractors working directly under the Department of Justice or the Department of Homeland Security, who may be required to place a minimum of $1 million into escrow or bond [1]. Targeting is also constrained: contractors can only pursue foreign criminal networks that are not an institutional branch of a foreign state or wholly managed by one [1]. Every deployment requires prior written sign-off from designated executive directors across both the DOJ and DHS [1]. Ari Redbord, global head of policy at TRM Labs and a former federal prosecutor, highlighted that this centralized approval structure keeps foreign policy and conflict escalation choices strictly within executive agencies rather than private hands [1]. Giancarlo acknowledged that avoiding unilateral private escalation justifies the stricter framework, noting that statecraft decisions carry critical public safety stakes [1]. Although standard operating procedures for the interagency effort were scheduled for completion by Oct. 11, the guidelines had not been publicly published as of Oct. 27 [1]. ## FAQ **What is the White House counter-hacking policy for crypto theft?** Announced via an Aug. 12 memo, the policy permits vetted DOJ and DHS contractors to perform authorized cyber operations against foreign criminal groups, subject to strict federal oversight. **Do participating contractors receive legal immunity?** No. The framework offers no immunity from prosecution and explicitly mandates compliance with federal statutes, including the Computer Fraud and Abuse Act. **Can private firms target state-sponsored groups like Lazarus Group?** No. The program excludes foreign organizations that are an institutional branch of or wholly directed by a foreign government. ## Sources 1. [Ex-CFTC Chair Calls White House Plan Letting Firms Hack Cybercriminals ‘Just About Right’](https://unchainedcrypto.com/ex-cftc-chair-calls-white-house-plan-letting-firms-hack-cybercriminals-just-about-right/) — unchainedcrypto.com, 2026-10-27 --- Basis Desk Newsroom · AI-generated, source-verified · https://basisdesk.news/about/how-we-use-ai