U.S. Department of Justice Shifts Focus Away from Cryptocurrency Investigations Under Trump Administration
Published On April 8, 2025
The United States Department of Justice (DOJ) has announced a significant strategic shift regarding its approach to cryptocurrency investigations. Under the direction of President Donald Trump, the DOJ will end its investigations into cryptocurrency fraud and redirect resources to tackle issues related to immigration enforcement, terrorism, and drug trafficking. This announcement was made through a memo issued late Monday by Deputy Attorney General Todd Blanche.
Changes in Enforcement Strategy
Deputy Attorney General Blanche emphasized President Trump’s commitment to “end the regulatory weaponization” of the cryptocurrency industry. In the memo, he stated, “The Department of Justice is not a digital assets regulator.” Moving forward, the DOJ will refrain from pursuing litigation or enforcement actions that superimpose regulatory frameworks on digital assets.
Instead, Blanche indicated that other federal regulators would address financial law violations “outside the punitive criminal justice framework.” He made it clear that prosecutors should not charge regulatory violations in cases involving digital assets under the new directive.
Dismantling the National Cryptocurrency Enforcement Team
As part of this shift, the DOJ will dismantle its National Cryptocurrency Enforcement Team (NCET), an initiative launched in February 2022 during President Joe Biden’s administration. The NCET was tasked with investigating cases of alleged fraud and illicit financial schemes within the cryptocurrency space. Notably, last year, the team achieved a conviction in its first open-market manipulation case, in which Avraham Eisenberg was found guilty of commodities fraud after manipulating cryptocurrency prices to accumulate $110 million.
The NCET had also been responsible for high-profile investigations against major cryptocurrency entities, including Binance and Tornado Cash— the latter being accused of facilitating money laundering for North Korea.
Trump’s Stance on Cryptocurrency
President Trump has been vocal in his criticism of the Biden administration’s regulatory approach to the cryptocurrency industry, blaming the “prior administration” for what he termed a “reckless strategy of regulation by prosecution.” Pursuing a contrasting vision, Trump has sought to portray himself as a promoter of digital currencies.
Shortly after returning to the White House for his second term on January 20, 2025, Trump signed Executive Order 14178—titled “Strengthening American Leadership in Digital Finance Technology.” This order revoked a Biden-era directive aimed at the responsible development of cryptocurrency, instead laying plans for a “national digital asset stockpile.”
In early March, Trump further solidified this commitment by announcing a national strategic reserve for cryptocurrency, which includes key currencies like Bitcoin, Ethereum, and several others. This announcement momentarily boosted the values of those digital currencies.
Political Implications and Ongoing Investigations
While the DOJ’s memo indicates a pivot away from pursuing regulatory violations, it also states that some cryptocurrency-related investigations will remain a priority. Blanche clarified that the department would focus its efforts on illegal activities that result in financial harm to digital asset investors and consumers, particularly in relation to organized crime, drug trafficking, and terrorism.
For example, he noted that criminal organizations, including cartels and human trafficking rings, have increasingly utilized digital assets to fund and launder the proceeds of their illicit activities. However, Blanche made it clear that the DOJ will not pursue actions against the platforms utilized by these enterprises to conduct illegal operations.
In recent developments, the Securities and Exchange Commission (SEC) has also ceased its probe into Coinbase, and the DOJ has dropped its investigation into Robinhood, which had faced allegations of mishandling cryptocurrency assets.
Conclusion
The DOJ’s new direction under President Trump’s administration marks a significant change in the U.S. government’s approach to the largely unregulated cryptocurrency industry. While focusing criminal law resources on more traditional forms of crime, the administration has positioned itself as an advocate for digital currencies, aiming to reshape the landscape of digital finance in America. As these developments unfold, the implications for the cryptocurrency industry and its regulation remain to be seen.