DOJ Disbands Crypto Unit as Trump Administration Eases Oversight Rules

The United States Department of Justice (DOJ) has disbanded the National Cryptocurrency Enforcement Team (NCET), a task force dedicated to crypto-related investigations. This development is part of a broader shift by the Donald Trump administration to ease regulations on digital assets.

NCET was established in 2021 under President Joe Biden, whose administration was renowned for its tough stance on crypto regulation, raising criticism from many in the industry. The task force consisted of prosecutors from the DOJ’s money laundering and cybercrime units and attorneys from various district offices.

The team collaborated on some of the DOJ’s biggest crypto cases. Those included Tornado Cash, a crypto mixer that scrambled crypto funds to obscure ownership, and the case of Avraham Eisenberg, a hacker who exploited a crypto trading protocol for more than $100 million. The NCET also led investigations into North Korean actors laundering proceeds from crypto hacks.

DOJ Disbands NCET

Deputy Attorney General Todd Blanche, the second-ranking official in the DOJ, announced that the task force’s disbandment is effective immediately. He emphasized that this move aligns with the agency’s efforts to comply with Trump’s January executive order on digital assets, which aimed to establish regulatory clarity for the industry.

“The Department of Justice is not a digital assets regulator. However, the prior Administration used the Justice Department to pursue a reckless strategy of regulation by prosecution,” the announcement added.

Furthermore, Blanche instructed DOJ employees to concentrate on prosecuting individuals who defraud digital asset investors instead of pursuing cases against crypto exchanges, mixers like Tornado Cash, and offline wallets.

A Shift in Crypto Regulations

In addition to dissolving the NCET, the Trump administration has restructured its approach to cryptocurrency enforcement. The Securities and Exchange Commission (SEC) has dropped several high-profile crypto lawsuit cases, including those against Coinbase, Uniswap Labs, Robinhood, OpenSea, Crypto.com, and Yuga Labs. 

Overall, the disbanding of the DOJ’s crypto unit and the SEC’s softened enforcement actions represent a significant shift in the U.S. government’s approach to cryptocurrency regulation. These changes aim to position the country as a leader in the digital financial sector.

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