Key Highlights:

• The U.S. Department of Justice has effectively disbanded its National Cryptocurrency Enforcement Team (NCET), narrowing its focus on enforcing cryptocurrency regulations.
• The DOJ will cease legal actions against cryptocurrency exchanges and services for regulatory infractions, instead concentrating on criminal acts linked to digital assets.
• This decision aligns with President Donald Trump’s executive order aimed at clarifying regulations for the cryptocurrency sector.

Article Content:

On April 8, 2025, the U.S. Department of Justice (DOJ) announced the termination of its cryptocurrency unit, making it clear that it would be “narrowing” its enforcement actions related to cryptocurrencies. This shift comes in response to President Trump’s earlier executive order focused on establishing regulatory clarity for the cryptocurrency industry.

In a memo to the department’s staff titled “Ending Regulation by Prosecution,” Deputy Attorney General Todd Blanche declared that the NCET, formed in 2022 during Joe Biden’s presidency, would be “disbanded effective immediately.”

“The Department of Justice is not a digital assets regulator,” said Blanche in the memo that was reviewed by CoinDesk. “However, the previous Administration used the Justice Department to pursue a reckless strategy of regulation by prosecution, which was poorly conceived and executed. The Justice Department will no longer pursue litigation or enforcement actions that impose regulatory frameworks on digital assets while President Trump’s actual regulators perform this job outside the punitive criminal justice framework.”

Blanche instructed staff to discontinue pursuing cases against cryptocurrency exchanges and related services for violations that were unintentional or involved the actions of their users. The focus will shift to prosecuting those who exploit digital asset investors or utilize cryptocurrencies for criminal enterprises such as terrorism or gang financing.

Moreover, ongoing investigations inconsistent with the new policy should be concluded, as Blanche noted that his office would collaborate with the crime division of the DOJ to ensure alignment with this policy.

Notably, the NCET had previously been involved in high-profile cases, including those related to the crypto mixer Tornado Cash and individuals like Avi Eisenberg, who faced sentencing after his conviction for fraud and market manipulation.

This memo arrives shortly after President Trump pardoned the founders of the crypto trading platform BitMEX, who had pleaded guilty to Bank Secrecy Act violations in the past.