Justice Department Shifts Focus from Cryptocurrency Investigations Under Trump Administration
Published on April 8, 2025
The United States Department of Justice (DOJ) has announced a significant shift in its approach to the regulation of digital currencies, indicating a major policy overhaul under the Trump administration. The Justice Department will cease its investigations into cryptocurrency-related fraud and misconduct and will instead redirect its resources towards combating issues such as immigration enforcement, terrorism, and drug trafficking.
In a memo released late Monday, Deputy Attorney General Todd Blanche cited President Donald Trump’s commitment to “end the regulatory weaponization” of the cryptocurrency sector as a guiding principle for this new direction. Blanche emphasized that the DOJ is not a regulatory body for digital assets and asserted that no additional legal actions would be pursued that could impose regulatory frameworks on cryptocurrencies.
“The Department of Justice is not a digital assets regulator,” wrote Blanche in the memo. He outlined that the DOJ would no longer engage in litigation or enforcement actions that align with what he described as a “reckless strategy of regulation by prosecution” set forth by the previous administration.
Dismantling the National Cryptocurrency Enforcement Team
As part of this strategic pivot, the DOJ has moved to dismantle its National Cryptocurrency Enforcement Team (NCET), which was formed in February 2022 during the Biden presidency. This team was dedicated to investigating cryptocurrency fraud and other illicit financial schemes. Notably, NCET gained attention after securing a conviction in a cryptocurrency market manipulation case, where the defendant was charged with fraudulently inflating prices to accumulate substantial digital assets.
The NCET also conducted probes into prominent cryptocurrency companies, including Binance and Tornado Cash, with the latter accused of facilitating money laundering for North Korea.
Trump’s Positioning on Cryptocurrency
In the wake of these changes, Trump has consistently positioned himself as a supporter of the digital currency movement, contrasting sharply with the regulatory approach taken by his predecessor. Soon after his return to office in January 2025, Trump issued Executive Order 14178, aimed at enhancing American leadership in digital finance technology. This order rescinded earlier regulations focused on the “responsible development” of cryptocurrencies initiated by the Biden administration.
Trump has made concrete strides in implementing this vision, announcing a national strategic reserve for cryptocurrency that includes notable currencies such as XRP, Cardano, Solana, Bitcoin, and Ethereum. This announcement led to a temporary increase in the market value of these digital assets.
Proclaiming himself the “crypto president,” Trump has also held significant discussions and meetings with leaders in the cryptocurrency sector, including a summit aimed at shaping the future of digital assets in the U.S. economy.
Addressing Illegal Activities
While acknowledging the discontinuation of broader cryptocurrency investigations, the DOJ memo clarified that certain criminal activities associated with digital assets will still be prioritized. Blanche indicated that the focus will now be on illegal operations that exploit digital currencies to cause financial harm to investors and consumers.
He stated that as criminals increasingly turn to digital assets for funding and laundering purposes, the DOJ will target the criminal organizations behind these operations. However, he specified that actions will not be taken against the platforms used by these criminal enterprises.
This latest move by the Trump administration reflects a considerable changing of the guard in the U.S. approach to cryptocurrency regulation, drawing attention within financial circles as well as among digital asset proponents and critics alike. As the Department of Justice looks to narrow its focus, many will be watching closely how these policies influence the rapidly evolving cryptocurrency landscape.
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