U.S. Justice Department Reassesses Cryptocurrency Investigations Under Trump Administration
April 8, 2025 – In a significant policy shift, the United States Department of Justice (DOJ) has announced its decision to scale back its investigations into cryptocurrency, redirecting its focus towards immigration enforcement, terrorism, and drug trafficking. This change comes under the administration of President Donald Trump, who has consistently criticized the previous administration’s regulatory approach towards digital currencies.
New Directives from the DOJ
In a memo released late Monday, Deputy Attorney General Todd Blanche articulated the new policy direction. He cited President Trump’s commitment to “end the regulatory weaponization” of the cryptocurrency industry. "The Department of Justice is not a digital assets regulator," Blanche stated, asserting that the DOJ would cease litigation or enforcement actions that impose regulatory frameworks on digital assets.
Blanche emphasized that regulatory enforcement concerning financial law would now be managed by other government departments, outside the realm of criminal justice.
Dismantling the National Cryptocurrency Enforcement Team
One immediate consequence of this directive is the dismantling of the National Cryptocurrency Enforcement Team (NCET), established in February 2022 under former President Joe Biden. The NCET aimed to investigate cases of fraud and financial crimes associated with cryptocurrencies. Notably, the team achieved its first conviction in a cryptocurrency manipulation case in 2024, securing a guilty verdict against Avraham Eisenberg, who was found to have orchestrated a commodities fraud scheme.
Under Trump’s leadership, the message is clear: the administration is moving away from the regulatory frameworks put in place by the Biden administration, with Blanche specifically criticizing the “reckless strategy of regulation by prosecution.”
Shifting Focus and Remaining Investigations
While the DOJ will prioritize combating illicit activities associated with digital currencies—such as those involving cartels and drug trafficking—it has clarified that platforms facilitating these illegal activities will not face prosecution for regulatory violations. Blanche noted, “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."
This shift does not entirely eliminate the DOJ’s engagement with cryptocurrency-related investigations; certain cases involving financial harm to consumers and investors will still be prioritized.
Trump’s Strategy in Digital Finance
Since returning to office for a second term in January 2025, President Trump has taken assertive steps to reshape the cryptocurrency landscape. He issued Executive Order 14178, which revoked a Biden-era executive action that sought the “responsible development” of digital assets and proposed the establishment of a national digital asset stockpile.
Recently, Trump has announced a national strategic reserve for cryptocurrency that includes major digital currencies like Bitcoin and Ethereum, drawing significant attention to his initiatives. He has also launched a “meme coin” and has personal business interests in the cryptocurrency firm World Liberty Financial, raising ethical questions regarding potential conflicts of interest.
At a White House meeting earlier this year, Trump referred to himself as the "crypto president" and reiterated a commitment to making America the leading force in digital finance, likening proactive measures to creating a “virtual Fort Knox” for digital assets.
Conclusion
This pivot in policy reflects a broader strategy by Trump’s administration to redefine the regulation of cryptocurrency in America, aiming to foster growth in the digital asset market while redirecting law enforcement resources. As the DOJ realigns its approach, it remains to be seen how these changes will affect the cryptocurrency landscape and related legal frameworks in the United States.
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