U.S. Justice Department Disbands Cryptocurrency Enforcement Unit
On April 8, 2025, the U.S. Department of Justice (DOJ) announced the immediate disbandment of its National Cryptocurrency Enforcement Team (NCET). This decision aligns with the Trump administration's broader initiative to ease regulations in the digital assets sector. Deputy Attorney General Todd Blanche emphasized that the DOJ will shift its focus toward prosecuting individuals who exploit digital assets for criminal activities, such as terrorism financing, narcotics trafficking, and organized crime. Blanche stated, "The Department of Justice is not a digital assets regulator," underscoring a move away from the previous administration's approach of "regulation by prosecution."
This policy change is in response to an executive order signed by President Donald Trump in January 2025, advocating for open access to blockchain networks and promoting innovation within the digital assets industry. The executive order aims to protect and promote the ability of individuals and private-sector entities to access and use public blockchain networks for lawful purposes without undue government interference. As part of this directive, the DOJ will no longer target virtual currency exchanges, mixing and tumbling services, or offline wallets for the actions of their users or for unintentional regulatory violations.
Critics of this decision, including some Democratic lawmakers, have expressed concerns about potential conflicts of interest, given President Trump's personal financial ties to the cryptocurrency industry. Senator Elizabeth Warren and Representative Maxine Waters have requested that the Securities and Exchange Commission (SEC) preserve records related to President Trump's crypto venture, World Liberty Financial, to investigate these potential conflicts. They argue that the administration's push for deregulation may be influenced by the president's personal investments in the digital assets sector.
