Senate Democrats Criticize DOJ for Disbanding Cryptocurrency Enforcement Unit

U.S. Deputy Attorney General Todd Blanche faces criticism from Senate Democrats over his decision to narrow the DOJ's crypto enforcement priorities and disband the National Cryptocurrency Enforcement Team (NCET). Key points include:

Six Senate Democrats labeled the move as allowing cryptocurrency money launderers to operate without oversight.
Blanche's directive limits cases against crypto exchanges, mixers, or wallets for user actions, raising concerns about compliance with anti-money laundering laws.
The Senators argued this creates vulnerabilities that could be exploited by criminals.
Blanche cited President Trump's executive order on crypto as justification, stating the DOJ is not a digital assets regulator.
He emphasized focusing on prosecuting those who harm digital asset investors or engage in related criminal activities.
New York Attorney General Letitia James echoed these concerns, urging federal regulation of crypto markets following the DOJ's announcement.

Senators requested Blanche reconsider dismantling NCET, viewing it as essential for law enforcement's ability to tackle cryptocurrency-related crimes.