TL;DR
- DOJ Shifts Focus: The U.S. Justice Department disbands its crypto crime unit, aligning with Trump’s pro-crypto policies to foster innovation and reduce enforcement-driven oversight.
- Regulatory Overhaul: New directives prioritize prosecuting individual bad actors over targeting exchanges or wallets, signaling a strategic pivot in digital asset regulation.
- Industry Implications: While the lenient approach may boost adoption, critics warn of increased risks for investors and potential illicit activities.
The U.S. Justice Department (DOJ) has officially disbanded its National Cryptocurrency Enforcement Team (NCET), marking a significant shift in the federal government’s approach to digital asset regulation. The decision aligns with President Donald Trump’s pro-crypto policies, which aim to foster innovation and reduce enforcement-driven oversight.
A Strategic Pivot Under Trump’s Administration
Deputy Attorney General Todd Blanche issued a memo announcing the immediate closure of NCET, stating that the DOJ is “not a digital assets regulator.” Blanche criticized the previous administration’s reliance on enforcement actions, calling it a “reckless strategy” that stifled the blockchain technology industry’s growth.
Established in 2021 under President Joe Biden, NCET was a collaborative task force focused on combating crypto-related crimes, including high-profile cases like the Tornado Cash sanctions and the $100 million Mango Markets exploit. The unit also investigated North Korean actors involved in laundering proceeds from crypto hacks.
Blanche’s directive shifts the Justice Department’s focus to prosecuting individual bad actors who victimize crypto investors rather than targeting exchanges, mixers, or offline wallets.
Regulatory Overhaul and Pro-Crypto Policies
The disbandment of NCET is part of a broader regulatory overhaul under Trump’s leadership. In March, the president signed an executive order to establish a Bitcoin reserve and instructed federal agencies to develop clear rules for digital asset markets.
Trump’s administration has also advanced two stablecoin bills, with one expected to reach the White House by June. These measures aim to position the U.S. as a global leader in cryptocurrency innovation.
Industry Impact and Future Outlook
The closure of NCET signals a more lenient regulatory environment, which could encourage the greater adoption of digital assets. However, critics warn that reduced oversight may increase risks for investors and enable illicit activities.
As the DOJ pivots to a new strategy, the crypto industry is watching closely to see how these changes will shape the future of digital asset regulation in the U.S. With Trump’s administration embracing crypto-friendly policies, the U.S. is poised to become a major player in the global blockchain ecosystem.
