U.S. Justice Department Disbands Cryptocurrency Enforcement Team
Washington, D.C. – April 8, 2025 – The U.S. Department of Justice (DOJ) has announced the disbandment of its National Cryptocurrency Enforcement Team (NCET), citing a directive that aligns with the recent policy shift initiated under the Trump administration. This development comes as the department refocuses its efforts to concentrate on cryptocurrency-related activities linked to drug cartels and terrorist organizations.
Shift in Focus
The announcement was made through a memo distributed by Deputy Attorney General Todd Blanche late Monday, which criticized the former Biden administration’s approach to regulating the cryptocurrency industry. Blanche described their strategy as one of "regulation by prosecution," indicating a significant departure from the preceding enforcement framework established since the NCET’s launch in February 2022. The unit had been tasked with tackling illicit financial activities and coordinating high-profile cases, including investigations into major players like Binance, where its founder, Changpeng Zhao, recently pled guilty to money laundering violations.
Going forward, Blanche specified that the DOJ will prioritize cases involving "individuals who victimize digital asset investors" or exploit cryptocurrencies for criminal purposes such as narcotics, human trafficking, and organized crime. He further instructed that any investigations deemed "inconsistent" with this new policy be closed immediately.
Regulatory Changes Under Trump
This pivot in cryptocurrency policy reflects a broader trend initiated under President Donald Trump’s leadership, who previously advocated for the U.S. to become a "crypto capital." Blanche’s memo references one of Trump’s executive orders aimed at promoting access to open blockchain networks without government persecution, further emphasizing the administration’s intent to foster a friendlier regulatory environment for digital currencies.
In the wake of this redirection, Blanche indicated that the DOJ will halt scrutiny of cryptocurrency exchanges and related services for violations that occur due to the actions of their users. Future prosecutions under federal banking, securities, or commodities laws will only proceed if there is evidence that individuals or firms willfully failed to meet licensing or registration mandates.
Impact on the Crypto Landscape
The implications of this policy transition are significant for the evolving cryptocurrency landscape. The U.S. Securities and Exchange Commission (SEC) has similarly adjusted its own approach to cryptocurrency enforcement, stepping back from several notable cases that had drawn public attention. Additionally, a U.S. banking regulator recently permitted banks to engage in certain crypto-related activities, further enhancing the appeal of this burgeoning market.
This policy adjustment aligns with Trump’s personal interest in cryptocurrency; reports have indicated that the Trump family is involved in a crypto venture that claims a substantial portion of its revenues from token sales. Trump’s endorsement of crypto initiatives and his public relations efforts, including the launch of his own tokens ahead of his inauguration, signal a concerted push to democratize access to digital currency opportunities.
Conclusion
As the DOJ redefines its approach to cryptocurrency enforcement, the ongoing changes reflect broader regulatory evolutions aimed at balancing innovation with oversight. This new focus suggests that while concerns about illicit activities remain paramount, there will be a greater emphasis on supporting and legitimizing the digital asset sector in the United States. The DOJ’s strategic pivot could influence both the regulatory landscape and the future of investment in cryptocurrencies, shaping the dialogue around digital finance in the years to come.
For more detailed updates on cryptocurrency regulations and policy changes, stay tuned to our coverage.
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