The U.S. Justice Department (DOJ) has disbanded its National Cryptocurrency Enforcement Team (NCET), marking a significant policy shift in federal oversight of digital assets under the Trump administration.
According to a Monday night memo from Deputy Attorney General Todd Blanche, cryptocurrency-related cases will now be handled by individual U.S. attorney’s offices with a narrowed focus on terrorism and serious criminal activities.
Trump’s Crypto-Friendly Reforms
This restructuring represents the latest move in President Trump’s pro-cryptocurrency agenda, which he prominently featured during his 2024 campaign. The administration characterizes previous enforcement approaches as regulatory overreach by the Biden administration.
“Prosecuting individuals who victimize digital asset investors, or those who use digital assets in furtherance of criminal offenses such as terrorism, narcotics and human trafficking, organized crime, hacking, and cartel and gang financing” will now be the priority, according to the memo.
The NCET, established in 2022 under President Biden, previously spearheaded major enforcement actions, including the investigation into cryptocurrency exchange Binance. That case resulted in founder Changpeng Zhao pleading guilty to anti-money laundering violations and a $4.3 billion settlement.
End Of De Facto Regulatory Tools
Under the new directive, prosecutors must close ongoing investigations that fall outside the revised priorities.
The DOJ will no longer target crypto exchanges, mixing services, or offline wallets for users’ actions or “unwitting violations of regulations.” Charges for financial law violations, such as unlicensed money transmission or unregistered securities offerings, will require proof that defendants knowingly and willfully broke the rules.
The memo explicitly criticizes previous attempts to use criminal enforcement as “de facto regulatory tools” for the cryptocurrency industry. The Justice Department’s Market Integrity and Major Frauds Unit will cease all cryptocurrency enforcement efforts, though the Computer Crime and Intellectual Property Section will continue providing guidance and training while serving as a liaison to the digital asset industry.
This policy shift aligns with Trump’s executive order supporting open access to blockchain networks and reflects his administration’s broader deregulatory stance. The Trump family has developed several cryptocurrency ventures over the past year, including World Liberty Financial, a planned decentralized digital bank that has already sold $550 million in tokens, with 75% of profits directed to Trump-linked entities.
Since taking office, the administration has scaled back oversight across multiple agencies, with the SEC pausing or abandoning several enforcement actions and revoking banking rules that restricted Wall Street’s cryptocurrency adoption.
Crypto Rally in Sight?
Despite these deregulatory moves, the digital asset market has experienced significant volatility, with Bitcoin trading around $78,000, down from its all-time high near $110,000. The broader cryptocurrency market has lost over $1.2 trillion in market capitalization since December.
Although positive for the crypto sector, price reactions to the DOJ removal of NCET have been overshadowed by the market attention on global trade developments, particularly as China and the US have been exchanging tariffs announcements over the past few days.
Still, it’s worth noting that bitcoin and other cryptocurrencies appear to be banking on risk-on flows resulting from the latest 90-day delay on US tariffs to major trade partners, except China. Bitcoin has since reclaimed the $80,000 level and could be in for more gains if it sustains rallies past this juncture.
