Overview

• The National Cryptocurrency Enforcement Team (NCET), established in 2022, has been disbanded effective immediately, per a memo from Deputy Attorney General Todd Blanche.
• The Justice Department will no longer target regulatory violations by crypto exchanges, mixers, and wallets, redirecting efforts to serious crimes like fraud, terrorism, and human trafficking.
• This policy change aligns with Trump’s January executive order promoting a crypto-friendly regulatory environment and limiting enforcement to criminal misuse of digital assets.
• Blanche criticized the Biden administration’s approach, calling it a ‘reckless strategy of regulation by prosecution’ that improperly used the DOJ to enforce regulatory frameworks.
• The move is part of broader Trump administration efforts to position the U.S. as a global leader in cryptocurrency, including creating a strategic Bitcoin reserve and easing financial oversight.