9th April 2025 – (Washington) The U.S. Justice Department has announced the dissolution of its National Cryptocurrency Enforcement Team (NCET), a unit dedicated to investigating cryptocurrency-related fraud, as Donald Trump’s administration rolls back regulatory oversight in the digital assets sector.
In a memo issued to department employees on Monday evening, Deputy Attorney General Todd Blanche stated that the NCET “shall be disbanded effective immediately.” Blanche, who previously represented Trump in the 2024 criminal trial that resulted in his conviction on multiple felony charges, described the digital assets industry as “critical to the nation’s economic development and innovation.”
“The Department of Justice is not a digital assets regulator,” Blanche noted, taking aim at Trump’s predecessor, Joe Biden, for what he referred to as a “reckless strategy of regulation by prosecution.”
Under the new directive, the Justice Department will cease pursuing litigation or enforcement actions that impose regulatory frameworks on digital assets, allowing actual regulators to manage oversight outside of a punitive criminal context. Blanche indicated that the department’s focus will now shift to prosecuting individuals who exploit digital asset investors or utilise cryptocurrencies in connection with serious criminal activities, including terrorism, drug trafficking, and organised crime.
The decision to disband the NCET aligns with an executive order signed by Trump at the beginning of his second term in January. This order emphasises the government’s responsibility to safeguard and promote the lawful use of public blockchain networks without undue persecution.
According to Blanche, Justice Department officials will no longer target virtual currency exchanges, mixing services, or offline wallets for actions taken by their end users, and ongoing investigations deemed “inconsistent” with the new policy should be closed.
A Justice Department spokesperson did not respond to requests for comment on Tuesday.
The NCET was established during Biden’s presidency to tackle the criminal exploitation of cryptocurrencies and was composed of attorneys with specialisations in cybercrime and money laundering. The team was responsible for several prominent cases in the crypto realm.
The disbandment ofalised in cybercrime, money laundering, and cryptocurrency-related legal issues. The team was responsible for leading several high-profile cases involving digital assets.
The move to disband the unit comes as Trump aims to position the US as the “crypto capital of the planet,” advocating for reduced regulations within the digital asset industry and promoting pro-crypto policies. Throughout his campaign for the presidency last year, Trump attracted support from crypto firms to bolster his candidacy.
In recent developments, Trump and his sons have reportedly been involved in launching a new cryptocurrency venture, World Liberty Financial, and secured a share of 75% in the net revenues from token sales linked to the project. Additionally, in March, Trump signed an executive order to establish a strategic cryptocurrency reserve for the US and hosted leaders from the crypto industry for discussions at the White House.
