DOJ Dissolves Crypto Enforcement Unit: Trump Policy Signals Major Regulatory Shift
In a landmark development that signals a dramatic shift in U.S. cryptocurrency regulation, the Department of Justice (DOJ) has officially disbanded its National Cryptocurrency Enforcement Team (NCET). This decision, announced on April 8, 2025, marks one of the most significant changes in federal crypto oversight under Trump’s second term and aligns with Trump’s broader pro-crypto regulatory stance.
Key Takeaways:
- NCET dissolution effective immediately per DOJ internal memo
- Ongoing cases transferred to existing Criminal Division units
- Move reflects Trump administration’s crypto-friendly approach
- Deputy AG Todd Blanche criticizes previous enforcement strategy
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Understanding the NCET Dissolution
The NCET, established in 2021 under the Biden administration, was originally tasked with investigating and prosecuting complex cryptocurrency-related crimes. The unit’s dissolution comes as part of Deputy Attorney General Todd Blanche’s directive, who characterized the team as “a reckless strategy” that prioritized headlines over effective policy.
Impact on Ongoing Investigations
All current NCET investigations will be redistributed to existing DOJ divisions, ensuring continuity in ongoing cases while streamlining the department’s approach to crypto-related enforcement. This restructuring reflects a more measured approach to cryptocurrency oversight, aligning with the administration’s broader deregulatory agenda.
Market Implications
The crypto industry has largely welcomed this development, viewing it as a positive sign for reduced regulatory pressure. This shift comes at a crucial time when Bitcoin tests significant price levels and the market seeks clearer regulatory guidance.
Frequently Asked Questions
What happens to existing NCET investigations?
Ongoing cases will be transferred to other units within the DOJ’s Criminal Division for continued prosecution and oversight.
How does this affect crypto businesses?
The move suggests a potentially more favorable regulatory environment for legitimate crypto businesses, though standard financial regulations still apply.
Will this impact international crypto enforcement?
While domestic enforcement strategy is changing, international cooperation on crypto crime continues through existing channels and partnerships.
Looking Ahead
The dissolution of NCET represents a significant milestone in the evolution of U.S. crypto regulation. As the industry continues to mature, this policy shift could pave the way for more balanced approaches to oversight and innovation in the digital asset space.