The U.S. Department of Justice (DOJ) is shutting down its special cryptocurrency enforcement unit, signaling the Trump administration’s recent move to reduce federal oversight of the digital asset industry.
The Trump Administration Eases Oversight on Digital Assets While Disbanding the Justice Department’s Crypto Enforcement Unit
U.S. Deputy Attorney General Todd Blanche announced that the National Cryptocurrency Enforcement Team’s (NCET) has been deployed immediately.
The four-page guidance framed the decision as part of Trump’s broader effort to create “regulatory clarity” for the crypto markets and to roll back aggressive enforcement policies.
“The Ministry of Justice is not a digital asset regulator. However, the previous Administration used the Ministry of Justice to pursue a reckless regulatory strategy through prosecution,” wrote Blanche.
Blanche, who also served as a defense attorney during Trump’s 2024 criminal trial, clearly stated that the DOJ’s focus will shift away from prosecuting crypto platforms and infrastructure providers, including exchanges, wallet services, and privacy mixers like Tornado Cash.
Instead, DOJ sources will target individuals accused of directly defrauding or harming crypto investors.
NCET Closed After Three Years of High-Profile Cases
Launched under the Biden administration in 2021, the NCET played a key role in many important cryptocurrency application actions. The unit was effective in prosecution:
- Tornado Cash: A privacy-focused crypto mixing service accused of facilitating money laundering.
- Avraham Eisenberg: A trader accused of using a decentralized finance protocol for an amount exceeding 100 million dollars.
- North Korean Cybercriminals: State-sponsored actors accused of laundering stolen digital assets.
The dissolution of NCET represents a significant change in the federal government’s approach to the regulation and implementation of digital assets.
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