DOJ Disbands National Cryptocurrency Enforcement Team Amid Regulatory Shift
The U.S. Department of Justice (DOJ) has disbanded its National Cryptocurrency Enforcement Team (NCET), effective immediately. This decision aligns with President Trump's executive order aimed at providing regulatory clarity for the crypto industry.
- Deputy Attorney General Todd Blanche stated that the DOJ will no longer engage in "regulation by prosecution."
- The DOJ will cease litigation and enforcement actions against crypto exchanges and related services regarding end users' actions.
- Focus will shift to prosecuting individuals who defraud digital asset investors or use crypto for criminal activities.
- Ongoing investigations inconsistent with this new policy should be closed.
- This move follows the U.S. Commodity Futures Trading Commission's reduction of its specialized enforcement teams, including those focused on crypto.
- NCET was involved in high-profile cases like Tornado Cash and Mango Markets exploiter Avi Eisenberg.
This memo comes shortly after Trump pardoned executives of the BitMEX trading platform, previously convicted of Bank Secrecy Act violations.