In a striking move that marks a dramatic pivot in U.S. policy on digital assets, the Department of Justice (DOJ) has announced the dissolution of its National Cryptocurrency Enforcement Team (NCET). The shift comes under the directive of President Donald Trump, whose administration is embracing a more crypto-friendly stance, reversing years of regulatory buildup under former President Joe Biden.
Outlined in a memo sent Monday night by Deputy Attorney General Todd Blanche, the changes signal a refocused approach in which federal prosecutors will prioritize serious criminal misuse of cryptocurrencies—such as in terrorism, human trafficking, drug trade, and organized crime—while stepping away from regulatory enforcement actions previously spearheaded by the DOJ.
The DOJ’s NCET, established in 2022 under the Biden administration, was created to coordinate and aggressively prosecute criminal abuses of digital assets, especially by exchanges and high-profile crypto players. The unit was instrumental in landmark cases, most notably the 2023 prosecution of Binance and its CEO Changpeng Zhao for anti-money laundering violations, resulting in a record $4.3 billion settlement.
However, the memo from Blanche directs that this specialized team will be shut down immediately, and its responsibilities redistributed to individual U.S. attorney’s offices. This decentralized model will allow regional offices to pursue cases based on local and national priorities—with a narrower focus on criminal behavior rather than regulatory breaches.
Shift in Focus: From Regulatory Enforcement to Crime Suppression
The DOJ’s new framework emphasizes that its role is to prosecute individuals who “victimize digital asset investors, or those who use digital assets in furtherance of criminal offenses such as terrorism, narcotics and human trafficking, organized crime, hacking, and cartel and gang financing.”
Cases related to unlicensed money transmission or unregistered securities offerings will no longer be prosecuted unless there is proof that the defendant knowingly and willfully violated the law. This represents a major break from previous DOJ efforts, which often treated crypto-based technical violations with criminal scrutiny.
In effect, the DOJ will no longer act as a de facto regulator of the crypto industry—an approach that critics argued blurred the lines between criminal law and financial oversight.
No More Legal Pursuit of Crypto Exchanges or Wallet Services
Another major component of the policy change is the DOJ’s retreat from targeting crypto platforms and infrastructure providers, such as exchanges, wallet developers, and mixers, for the actions of their users.
“Enforcement actions that have the effect of superimposing regulatory frameworks on digital assets” are being discontinued, the memo said, effectively shifting oversight responsibility back to traditional financial regulators like the SEC and CFTC.
The memo makes clear that only willful violations of financial laws will now be subject to criminal prosecution—a stark departure from previous blanket enforcement strategies that treated even unintentional noncompliance as a potential crime.
Political Influence: Trump’s Pro-Crypto Agenda
This regulatory rollback is in line with President Trump’s broader vision for a deregulated digital economy. During his 2024 campaign, Trump positioned himself as an advocate for blockchain innovation and open access to decentralized networks.
Now, as president, he’s delivering on that promise. The memo aligns with Trump’s recent executive order supporting reduced oversight of blockchain infrastructure and directing federal agencies to foster crypto innovation rather than hinder it.
Trump also has personal financial interests in the digital asset space. His family has been linked to several crypto initiatives, including a forthcoming decentralized bank called World Liberty Financial, which has already raised over $550 million through token sales. A large portion of those profits reportedly flow to Trump-affiliated entities.
Additionally, Trump and former First Lady Melania have endorsed meme coins bearing their names, tapping into the growing trend of personality-driven crypto ventures.
In another significant rollback, the DOJ’s Market Integrity and Major Frauds Unit will terminate all cryptocurrency enforcement activity. While the Criminal Division’s Computer Crime and Intellectual Property Section will continue to offer training and support, it will take a secondary role, mainly functioning as a liaison to the digital asset industry.
This leaves a notable gap in centralized enforcement, potentially giving crypto companies more breathing room in a landscape that had become increasingly crowded with overlapping federal investigations.
The policy shift comes at a turbulent time for the crypto market. Despite the Trump administration’s deregulatory push, digital asset prices have taken a steep dive. Bitcoin is currently trading around $78,000—down significantly from its all-time high of nearly $110,000. The broader market has shed more than $1.2 trillion in value since December.
Analysts are divided over whether this regulatory easing will encourage long-term investment in the sector or expose it to greater volatility and abuse. Supporters argue it will unleash innovation by removing burdensome restrictions, while critics worry it could invite bad actors and hurt retail investors.
Prosecutors across the country have been instructed to wind down ongoing investigations that don’t align with the new directives. This includes several civil and criminal cases previously aimed at crypto startups for failing to register offerings or follow technical compliance rules.
Going forward, the DOJ’s digital asset focus will be tightly constrained: prosecuting fraud, terrorist financing, drug trafficking, and organized criminal operations that utilize cryptocurrencies—not regulating the industry.
The DOJ’s decision to dismantle its crypto enforcement unit and narrow the scope of its legal actions marks a seismic shift in how the U.S. government approaches digital assets. As the Trump administration seeks to redefine America’s stance on crypto, this move is sure to reshape the landscape for companies, investors, and law enforcement agencies alike.
Whether it leads to a golden age of innovation or a surge in financial crime remains to be seen.
