DOJ Dismantles Crypto Crime Team

DOJ Dismantles Crypto Crime Team Under Trump Administration

The US Department of Justice (DOJ) has dissolved its National Cryptocurrency Enforcement Team (NCET), a unit established in 2021 under the Biden administration. This decision, effective immediately, is detailed in a memo released April 7, 2025.

Key Changes in Crypto Regulation

• NCET Disbandment: The DOJ, under Deputy Attorney General Todd Blanche, argues it is "not a digital assets regulator" and criticizes the previous administration's "regulation by prosecution" approach.
• Shift in Enforcement Priorities: The DOJ will now focus on prosecuting individuals harming digital asset investors, but will avoid cases against crypto exchanges, mixers (like Tornado Cash), and offline wallets.
• Executive Order Influence: This shift aligns with President Trump's January 2025 executive order aiming for "regulatory clarity" in the crypto industry. The order also created the President’s Working Group on Digital Asset Markets, chaired by David Sacks, the White House’s crypto and AI Czar.
• SEC Policy Changes: The Securities and Exchange Commission (SEC) has also softened its stance, closing investigations into major firms like Coinbase without further action. The SEC is actively clarifying the regulatory status of digital assets, with recent announcements regarding meme coins and stablecoins.
• OCC Policy Changes: The Office of the Comptroller of the Currency (OCC) has rolled back restrictive guidance on crypto-related bank activities, promoting a more crypto-friendly environment.

This marked shift towards a crypto-friendly regulatory environment represents a significant change from the Biden administration's policies and fulfills a key campaign promise from President Trump. The impact on the industry remains to be seen, but it signals a potential era of reduced regulatory hurdles and increased innovation.

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