Key Takeaways:
- The DOJ has disbanded its National Cryptocurrency Enforcement Team, ending its approach of “regulation by prosecution” in the digital asset sector.
- Prosecutors are now directed to focus only on cases involving criminal misuse of crypto, not regulatory violations.
- The shift aligns with Trump’s executive order aiming to provide regulatory clarity and follows broader downsizing of crypto enforcement teams across federal agencies.
The U.S. Department of Justice (DOJ) has disbanded its National Cryptocurrency Enforcement Team (NCET), marking a major shift in how the agency approaches the regulation of digital assets.
In a memo titled “Ending Regulation by Prosecution,” Deputy Attorney General Todd Blanche stated that the DOJ is “not a digital assets regulator” and criticized the Biden administration’s prior strategy of using prosecutions to shape crypto policy.
The U.S. Justice Department is disbanding its National Cryptocurrency Enforcement Team and ordering prosecutors to narrow crypto investigations to focus on drug cartels and terrorist groups, according to a memo seen by Reuters. https://t.co/FHplkwZoyr
— Yahoo News (@YahooNews) April 8, 2025
This change aligns with a January executive order from President Trump, promoting “regulatory clarity and certainty” for the crypto industry.
Going forward, the DOJ will no longer pursue enforcement actions targeting crypto platforms for regulatory violations like the Bank Secrecy Act or unlicensed money transmission.
Instead, prosecutors will focus on individuals who use cryptocurrency for criminal activities, such as terrorism financing or fraud.
Ongoing investigations that don’t match this new approach will be closed.
This restructuring follows similar actions by the Commodity Futures Trading Commission (CFTC), which also scaled back its digital asset teams.
The NCET, created in 2022, had led high-profile cases against Tornado Cash and Mango Markets’ exploiter Avi Eisenberg.
The policy shift also coincides with the pardon of BitMEX’s founders under the Trump administration.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
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