In a significant policy reversal, the U.S. Department of Justice (DOJ) has announced the immediate dissolution of its National Cryptocurrency Enforcement Team (NCET). Deputy Attorney General Todd Blanche communicated this decision in a memo, stating that the DOJ will cease regulatory enforcement actions against digital asset entities. The department will now prioritize prosecuting individuals who exploit cryptocurrencies for serious crimes, including terrorism, human trafficking, and organized crime.
US Department of Justice Disbands NCET
This strategic shift aligns with President Donald Trump’s pro-cryptocurrency agenda, which aims to position the United States as a global leader in the digital assets sector. The administration has expressed intentions to foster innovation and reduce regulatory barriers within the cryptocurrency industry.
The NCET, established in 2021 under the previous administration, was tasked with investigating and prosecuting illicit activities involving digital currencies. Its dissolution reflects the current administration’s commitment to recalibrating the federal government’s approach to cryptocurrency oversight. Deputy Attorney General Blanche emphasized that the DOJ is not a digital assets regulator and criticized the prior administration’s strategy of “regulation by prosecution” as reckless.
Moving forward, the DOJ will focus its resources on cases where digital assets are directly utilized in criminal conduct, such as funding terrorism, facilitating human trafficking, or supporting organized crime. This approach seeks to balance the promotion of technological innovation with the necessity of addressing serious criminal misuse of cryptocurrencies.
Industry stakeholders have expressed varied reactions to this development. Advocates for the cryptocurrency sector view the policy change as a positive step toward clearer and more supportive regulatory frameworks. Conversely, some experts caution that reduced oversight could potentially increase vulnerabilities to illicit activities within the digital assets space.
This policy shift is part of a broader trend within the Trump administration to ease regulatory pressures on the cryptocurrency industry. Similar adjustments have been observed in other regulatory bodies, including the Securities and Exchange Commission (SEC), indicating a concerted effort to create a more accommodating environment for digital asset innovation and growth.
