US Justice Department Shifts Focus from Cryptocurrency Investigations Under Trump Administration
Date: April 8, 2025
In a significant policy shift, the United States Department of Justice (DOJ) has announced the cessation of its investigations into cryptocurrency fraud. Under the guidance of the Trump administration, the department will redirect its efforts toward more traditional areas of law enforcement, specifically targeting immigration violations, terrorism, and drug trafficking.
New Direction for the DOJ
Deputy Attorney General Todd Blanche outlined this new focus in a memo released on Monday. This decision comes as part of President Donald Trump’s broader commitment to dismantle regulatory frameworks that he claims have been detrimental to the cryptocurrency industry, encapsulated in his pledge to “end the regulatory weaponization” of digital assets.
“The Department of Justice is not a digital assets regulator,” Blanche stated. He further explained that the DOJ will no longer engage in litigation or enforcement actions that would impose regulatory structures on digital assets, effectively shifting the responsibility for enforcement to other federal agencies.
As part of this realignment, the DOJ will immediately dissolve its National Cryptocurrency Enforcement Team (NCET), which was established in February 2022 during the Biden administration. This team was tasked with investigating cases of fraud and illicit financial activities in the cryptocurrency realm, including high-profile cases against companies like Binance and Tornado Cash, a platform accused of laundering funds for North Korea.
Overview of Recent Investigations
Under NCET’s watch, notable cases emerged, including a conviction in a precedent-setting cryptocurrency market manipulation case where Avraham Eisenberg was found guilty of fraud that led to a substantial gain of $110 million in digital assets. Despite past efforts, the new direction under Trump reflects a strategic withdrawal from aggressive oversight in a sector that he seeks to promote as a pillar of the American economy.
Trump has frequently criticized the previous administration, asserting that its regulatory policies have hindered innovation and investment in the crypto space. He has described the Biden administration’s approach as one that weaponizes government inquiries against the burgeoning industry.
Trump’s Support for Digital Currencies
Since returning to the White House for a second term, Trump has taken significant steps to bolster the cryptocurrency industry. On January 23, he signed Executive Order 14178, titled “Strengthening American Leadership in Digital Finance Technology.” This order rescinded a preceding Biden executive action that emphasized the careful and responsible development of cryptocurrency, instead advocating for what Trump has termed a “national digital asset stockpile.”
Moreover, Trump announced the establishment of a national strategic reserve for several cryptocurrencies, including Bitcoin, Ethereum, and others, and hosted the inaugural White House Digital Assets Summit on March 7, 2025, aimed at solidifying the United States’ leadership in the global cryptocurrency sector.
At the summit, he reiterated his ambition for America to become the “Bitcoin superpower of the world,” while projecting a vision for a secure digital financial system akin to a “Fort Knox” for virtual currencies.
Remaining Focus on Criminal Activities
While the DOJ will significantly reduce its regulatory approach regarding digital assets, Blanche mentioned that certain investigations would still be prioritized. The department aims to focus its remaining efforts on illegal activities that inflict financial harm on investors and consumers, and support criminal networks, including drug cartels and human traffickers utilizing digital currencies for illicit profits.
However, Blanche made it clear that the department will not pursue actions against those platforms that facilitate these illegal operations. This decision illustrates a shift toward a more lenient and supportive stance toward cryptocurrency firms, contrasted sharply with the previous administration’s regulatory scrutiny.
As the cryptocurrency landscape continues to evolve, this new approach under the Trump administration marks a pivotal moment for investors, businesses, and regulatory bodies alike.
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