Trump Administration Shuts Down DOJ’s Crypto Crime Unit in Major Policy Shift
- DOJ disbands National Cryptocurrency Enforcement Team (NCET) under Trump administration.
- DOJ will now focus on prosecuting scams, fraud, and market manipulation.
The U.S. Department of Justice (DOJ) has officially disbanded the National Cryptocurrency Enforcement Team (NCET), marking a major policy shift under President Donald Trump. The move aligns with the administration’s push to ease crypto regulations and promote innovation in the sector.
NCET was launched in 2021 under the Biden administration. It focused on tackling high-profile crypto crimes, including cases against Tornado Cash and Avraham Eisenberg. It also investigated North Korean cybercriminals laundering stolen crypto assets. The task force included experts in cybercrime, money laundering, and digital asset law.
Deputy Attorney General Todd Blanche confirmed the decision in a memo cited by Fortune. He criticized the prior administration’s approach of “regulation by prosecution.” Blanche emphasized that the DOJ is not a digital assets regulator and should not police the industry.
Trump’s Order Triggers Regulatory Overhaul
According to the memo, the DOJ will now prioritize criminal prosecutions. The focus will shift to scams, fraud, and market manipulation. Blanche instructed personnel to avoid enforcement actions against exchanges, mixers, and offline wallets.
This decision follows President Trump’s January 2025 executive order on digital assets. The order seeks to provide regulatory clarity and support crypto-friendly policies. It also created the President’s Working Group on Digital Asset Markets, led by crypto and AI Czar David Sacks.
The Trump administration has also directed the SEC and CFTC to revisit their crypto oversight strategies. Acting SEC Chair Mark Uyeda confirmed a review of the Howey Test. Recently, SEC Commissioner Hester Peirce said meme coins fall outside the agency’s jurisdiction.
The SEC also clarified that stablecoins are not securities. Additionally, the OCC rolled back earlier guidance that restricted banks from crypto activity. Federal agencies were ordered to report their crypto holdings to the U.S. Treasury by April 7. However, those disclosures remain confidential.
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Trump Administration Shuts Down DOJ’s Crypto Crime Unit in Major Policy Shift
- DOJ disbands National Cryptocurrency Enforcement Team (NCET) under Trump administration.
- DOJ will now focus on prosecuting scams, fraud, and market manipulation.
The U.S. Department of Justice (DOJ) has officially disbanded the National Cryptocurrency Enforcement Team (NCET), marking a major policy shift under President Donald Trump. The move aligns with the administration’s push to ease crypto regulations and promote innovation in the sector.
NCET was launched in 2021 under the Biden administration. It focused on tackling high-profile crypto crimes, including cases against Tornado Cash and Avraham Eisenberg. It also investigated North Korean cybercriminals laundering stolen crypto assets. The task force included experts in cybercrime, money laundering, and digital asset law.
Deputy Attorney General Todd Blanche confirmed the decision in a memo cited by Fortune. He criticized the prior administration’s approach of “regulation by prosecution.” Blanche emphasized that the DOJ is not a digital assets regulator and should not police the industry.
Trump’s Order Triggers Regulatory Overhaul
According to the memo, the DOJ will now prioritize criminal prosecutions. The focus will shift to scams, fraud, and market manipulation. Blanche instructed personnel to avoid enforcement actions against exchanges, mixers, and offline wallets.
This decision follows President Trump’s January 2025 executive order on digital assets. The order seeks to provide regulatory clarity and support crypto-friendly policies. It also created the President’s Working Group on Digital Asset Markets, led by crypto and AI Czar David Sacks.
The Trump administration has also directed the SEC and CFTC to revisit their crypto oversight strategies. Acting SEC Chair Mark Uyeda confirmed a review of the Howey Test. Recently, SEC Commissioner Hester Peirce said meme coins fall outside the agency’s jurisdiction.
The SEC also clarified that stablecoins are not securities. Additionally, the OCC rolled back earlier guidance that restricted banks from crypto activity. Federal agencies were ordered to report their crypto holdings to the U.S. Treasury by April 7. However, those disclosures remain confidential.
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