- Deputy Attorney General Todd Blanche released a memo relaying that the US Justice Department will disband its National Cryptocurrency Enforcement Team (NCET).
- Prosecutors are to instead shift their focus towards crypto which is used in terrorism, cartels, or actual crime.
- This marks an end towards regulation by enforcement/prosecution and a friendlier stance towards the crypto industry.
- This move is seen as part of the agency’s compliance with Trump’s executive order on digital assets, whereby regulatory clarity on digital assets was a core aim.
Deputy Attorney General Todd Blanche has reportedly released a four-page memo to staff at the US Department of Justice on Monday night in the United States.
The memo states that the previous administration pursued a strategy of ‘regulation by prosecution’ and that the agency would disband the NCET which had been dedicated to investigations relating to crypto.
However, the prior Administration used the Justice Department to pursue a reckless strategy of regulation by prosecution, which was ill conceived and poorly executed. The Justice Department will no longer pursue litigation or enforcement actions that have the effect of superimposing regulatory framework on digital assets.
An excerpt from the memo sent by Deputy Attorney General Todd Blanche.
Blanche is the second-highest ranking official for the Department of Justice and described how the immediate disbanding of the NCET was part of complying with an executive order made by Trump in January 2025.
The referenced order pertained to establishing regulatory clarity, whereby individuals and entities should be able to access open blockchain networks without persecution.
Blanche mentioned that the Department of Justice will prioritise investigations which prosecute those who victimise digital asset investors, rather than targeting exchanges, wallets, mixers etc.
This marks a change in stance from what was perceived as a blanket blacklisting of almost all things crypto by the previous administration.
Who Were the NCET?
The National Cryptocurrency Enforcement Team was established in 2022 as part of the previous administration’s goal to counter illicit financial activity.
The NCET was responsible for a case against Binance’s founder Changpeng Zhao (CZ). CZ was found guilty in a case which many perceived to be a ‘witch hunt’.
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Further Context
The Trump family has established their own crypto venture named World Liberty Finance and has also launched their own stablecoin USD1.
While these crypto ventures by the Trump family are perhaps viewed in a more legitimate light, controversy still surrounds the launch of meme coins TRUMP and MELANIA, which were launched/endorsed by the president and first lady respectively.
The Trump administration has been executing a friendly stance towards the crypto industry following a number of significant moves to embrace digital assets. This includes an executive order to establish a Strategic Bitcoin Reserve.
Related: Battle Lines Drawn: China vs. Trump Tariffs While Stagflation Fears Rattle Crypto Markets
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