U.S. Department of Justice disbands crypto enforcement team

“In a sweeping shift in U.S. crypto enforcement policy, the Department of Justice has disbanded its National Cryptocurrency Enforcement Team (NCET), narrowing its investigative scope to focus primarily on the use of digital assets by terrorist groups, drug cartels, and organized crime. The move, initiated by Deputy Attorney General Todd Blanche, aligns with an executive order from President Donald Trump that signals a major departure from the previous administration’s aggressive regulatory stance on digital assets.

The NCET, created in February 2022, played a key role in high-profile cases including the investigation of Binance and its founder Changpeng Zhao. However, Blanche’s memo accused the Biden administration of “regulation by prosecution” and announced a pivot in strategy. Under this new directive, investigations will now target individuals or groups leveraging crypto for terrorism, narcotics trafficking, human trafficking, hacking, and gang financing — while winding down probes that fall outside this scope.

Significantly, the memo orders the closure of any ongoing investigations inconsistent with the revised policy and bars prosecutors from charging regulatory violations unless there’s clear evidence of willful misconduct. It also shields crypto exchanges, wallet providers, and privacy-enhancing tools like mixers and tumblers from prosecution based solely on their users’ actions or accidental violations.

This redirection is underpinned by Trump’s broader agenda to transform the U.S. into the “crypto capital of the planet.” Since taking office, his administration has rolled back regulatory measures, signaled leniency from agencies like the SEC, and openly embraced digital assets — with the Trump family reportedly holding a 75% stake in net revenues from a crypto venture called World Liberty Financial. Ahead of his return to office, Trump also launched crypto tokens such as $TRUMP and $MELANIA, branding them as symbols of support rather than investment vehicles.

Blanche, a former defense attorney for Trump, now holds the second-highest position in the Justice Department and is executing a vision that gives both individuals and companies broader freedom to engage with open blockchain networks — without fear of federal prosecution.

The dismantling of NCET and the rollback of regulatory enforcement mark a turning point in America’s approach to crypto — one that could redefine the landscape for years to come.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency investments are volatile and involve risk. Always conduct your own research before making financial decisions.”