- The U.S. Department of Justice has disbanded its National Cryptocurrency Enforcement Team, redirecting focus to crimes involving digital assets
- Deputy Attorney General Todd Blanche criticized previous “regulation by prosecution” approaches, emphasizing a shift toward prosecuting individuals exploiting digital assets for crimes like terrorism and human trafficking
- This move aligns with President Donald Trump’s executive order promoting open access to blockchain networks and reducing regulatory oversight on digital assets
In a significant policy shift, the U.S. Department of Justice (DOJ) has dissolved its National Cryptocurrency Enforcement Team (NCET), signaling a move away from broad regulatory enforcement toward targeting specific criminal activities involving digital assets. Deputy Attorney General Todd Blanche’s memo outlines a redirection of efforts to prosecute individuals misusing cryptocurrencies for serious offenses such as terrorism, narcotics trafficking, and organized crime. This decision reflects the Trump administration’s broader agenda to foster innovation in the digital asset sector by reducing regulatory constraints and will be a welcome relief to crypto entrepreneurs.
Shift in Enforcement Priorities
Established under President Joe Biden’s administration, the NCET aimed to address the criminal misuse of cryptocurrencies and digital assets. However, Deputy Attorney General Todd Blanche criticized this approach, stating that the previous administration pursued a “reckless strategy of regulation by prosecution.” Blanche emphasized that the DOJ is not a digital assets regulator and will instead focus on prosecuting individuals who exploit digital assets for criminal purposes, including terrorism, human trafficking, and organized crime.
MAJOR update re DOJ and prosecution of digital assets – “the Department will stop participating in regulation by prosecution in this space.”
This memo from the Deputy AG does a few important things, including making it clear the DOJ is NOT going after exchanges and wallets for… pic.twitter.com/rOyGocdFbn
— Amanda Tuminelli (@amandatums) April 8, 2025
This policy change aligns with President Donald Trump’s executive order advocating for open access to blockchain networks without undue regulatory interference. The order calls for the government to ensure that individuals and private sector entities can access and use open public blockchain networks lawfully. Blanche’s memo instructs prosecutors to cease targeting virtual currency exchanges, mixing services, and offline wallets for the actions of their end users or for unintentional regulatory violations.
Implications for the Crypto Industry
The disbandment of the NCET and the DOJ’s shift in focus have been welcomed by advocates of the cryptocurrency industry, who have long criticized regulatory overreach. Peter Van Valkenburgh, executive director of the advocacy group Coin Center, praised the move, stating, “We should be going after bad guys. Not the developers of good tools that bad guys happen to use.”
This change is expected to foster a more innovation-friendly environment in the digital asset sector while maintaining enforcement against direct criminal misuse, although critics worry that disbanding the unit is leaving the door open to misuse on a grand scale.
