The US Department of Justice is disbanding a team of prosecutors that had been dedicated to pursuing cryptocurrency-related crimes, according to a memo.
The move signals a significant shift in enforcement priorities, with less emphasis on complex crypto cases involving banking and securities law.
“The Department of Justice is not a digital assets regulator,”
wrote Deputy Attorney General Todd Blanche in a memo sent to prosecutors on April 7.
This development is the latest in a series of steps by the Trump administration aimed at bolstering the cryptocurrency industry while rolling back initiatives launched under President Joe Biden to crack down on wrongdoing in the sector.
A similar shift in priorities has also been noted at the Securities and Exchange Commission.
Blanche’s memo is part of a broader strategy within the Justice Department to scale back certain white-collar crime enforcement efforts, in favour of focusing on President Donald Trump’s stated priorities: illegal immigration, gang activity, and drug-related offences.
Blanche criticised the previous administration, saying it had
“used the department to pursue a reckless strategy of regulation by prosecution, which was ill conceived and poorly executed.”
Moving forward, he said, the Department’s crypto enforcement will be limited to targeting individuals and entities that defraud crypto investors or use digital assets to fund criminal enterprises such as human trafficking, drug smuggling, or terrorism.
The crypto industry, which invested significantly in support of Trump’s election campaign, has long argued that the Biden administration unfairly pursued both civil and criminal cases against innocent actors, The Associated Press reported.
A prominent example is the ongoing case against the developers of Tornado Cash, a crypto mixer used to obscure digital asset ownership – a cause that has become a rallying point for privacy and crypto advocates.
“We should be going after bad guys. Not the developers of good tools that bad guys happen to use,”
said Peter Van Valkenburgh, executive director of the advocacy group Coin Center, in a post on X praising Blanche’s announcement.
The National Cryptocurrency Enforcement Team (NCET), formed during Biden’s presidency, had been specifically tasked with investigating exchanges, mixers, and other entities allegedly enabling the misuse of digital currencies for criminal activity.
However, Blanche stated that such entities will no longer be targeted “for the acts of their end users or unwitting violations of regulations.”
The disbandment of the NCET is effective immediately. Additionally, the Market Integrity and Major Frauds Unit will
“cease cryptocurrency enforcement in order to focus on other priorities, such as immigration and procurement fraud.”
Formerly a crypto sceptic, Trump has since pledged to make the United States the global hub of cryptocurrency.
He and his sons have also pursued various crypto-related business ventures to expand their personal wealth.
Featured image credit: edited from freepik
