US Justice Department Shifts Focus Away from Cryptocurrency Investigations Under Trump Administration
Published April 8, 2025
In a significant policy shift, the United States Department of Justice (DOJ) has announced the termination of various cryptocurrency investigations, redirecting its resources toward addressing more traditional criminal activities such as immigration enforcement, terrorism, and drug trafficking. This decision comes under the leadership of President Donald Trump, who has previously criticized the regulatory approach of the prior administration regarding digital currencies.
Memo from Deputy Attorney General
In a memo released on Monday, Deputy Attorney General Todd Blanche emphasized that the DOJ does not consider itself a regulator of digital assets. The memo quoted Trump’s commitment to “end the regulatory weaponization” of the cryptocurrency industry. Blanche stated, “The Department of Justice is not a digital assets regulator” and reinforced that prosecutors should not pursue regulatory violations related to digital assets.
As a result of this new directive, the DOJ will dismantle its National Cryptocurrency Enforcement Team (NCET), which was established in February 2022 during the Biden administration. This team was specifically tasked with tackling fraud and illicit financial schemes within the cryptocurrency space. Under NCET, one of its significant successes included the conviction of Avraham Eisenberg, who was found guilty of manipulating cryptocurrency prices, resulting in the theft of $110 million in digital assets.
A Shift in Enforcement Strategy
The DOJ’s focus will now pivot towards pursuing criminal organizations that utilize digital currencies for illegal activities such as funding drug trafficking and terrorism. Blanche noted that while the department would maintain certain investigations, the emphasis would be on actions that yield financial harm to consumers and investors rather than on the platforms that facilitate these transactions.
For instance, the memo highlighted the increasing use of digital assets by cartels and human trafficking rings to finance operations and launder money. Blanche stated, “For example, cartels and human trafficking and smuggling rings have increasingly turned to digital assets to fund their operations and launder the proceeds of their illicit businesses.”
Trump’s Position on Cryptocurrency
Since returning to office for a second term, Trump has made it a priority to reshape the regulatory landscape for cryptocurrency. On January 23, he issued Executive Order 14178, which dismantled a Biden-era executive action aimed at ensuring “responsible development” of cryptocurrency. In its place, Trump introduced plans for a “national digital asset stockpile,” including five cryptocurrencies—XRP, Cardano, Solana, Bitcoin, and Ethereum—in a strategic reserve announced in early March.
Trump has branded himself as the “crypto president,” aligning himself closely with the cryptocurrency industry and hosting significant meetings, such as the “first-ever White House Digital Assets Summit.” He has openly criticized the Biden administration’s approach to cryptocurrency investigations, suggesting it was an abuse of governmental power against the industry.
Implications of the Policy Change
As the Trump administration embarks on this new approach, it is important to consider the potential implications for the cryptocurrency market. While the focus will be on targeting illegal use of cryptocurrencies, the decline in regulatory scrutiny may provide a more favorable environment for legitimate businesses within the sector. However, critics remain wary, questioning the ethical dimensions of Trump’s personal investments in cryptocurrencies.
The DOJ’s latest policy adjustments signify a substantial transformation in how federal authorities will engage with the cryptocurrency space. As the agency narrows its focus, the outcome of these new enforcement strategies and their impact on both the market and law enforcement capabilities will be closely monitored in the coming months.
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