The DOJ has shut down its National Cryptocurrency Enforcement Team, which was created under Biden to tackle crimes related to digital assets. In an internal memo from Todd Blanche, the Deputy Attorney General, it was announced that the team has been disbanded with immediate effect.
Blanche said in the memo that the DOJ would no longer regulate digital assets, as the previous administration had exceeded its authority in prosecuting criminals to enforce crypto regulations. The letter emphasized that how the admin interacts with the crypto space will be different than how it interacted previously.
Set up in late 2021, NCET was made to target platforms engaged in other illegal activities, including money laundering and other crimes done using crypto. But the Trump administration claims that prosecuting platforms for accidental or end-user violations hinders innovation and puts excessive strain on lawful crypto companies.
From now on, the DOJ will not apply its resources to the crypto industry at large but rather to the actual criminal misuse of digital assets, like financing terrorism, drug trafficking, human trafficking, organized crime, and cyberattacks.
This adjustment matches the Trump administration’s broader pro-crypto policy. The Trump administration has consistently supported the US becoming a future leader in digital assets. Their efforts include outlining plans for a Bitcoin reserve and supporting activities such as decentralized finance initiatives and family-backed crypto tokens.
With regulators, congressmen are worried over potential conflicts of interest. Critics point out the proposed stablecoin and other Trump-affiliated crypto projects that could arise in Congress.
Even with the controversy, the administration is not backing down from encouraging blockchain innovation and taking away regulatory restrictions from the crypto world. The NCET going out of service embodies this philosophy as it exhibits a hands-off digital asset approach and focuses on the permissible utility of blockchain throughout the country.
