In a notable move affecting the cryptocurrency world, the U.S. Department of Justice (DOJ) is reportedly shutting down its dedicated cryptocurrency enforcement unit. This action is seen as the latest step by President Donald Trump’s administration to scale back federal oversight of the rapidly evolving digital asset industry.

Justice Department Disbands Crypto Enforcement Unit as Trump Administration Eases Oversight of Digital Assets

The news of the National Cryptocurrency Enforcement Team’s (NCET) disbandment was delivered by Assistant U.S. Attorney Todd Blanche.

According to a four-page directive, this decision is being framed as part of Trump’s broader initiative to bring “regulatory clarity” to the crypto markets and to reverse what are described as overly aggressive enforcement policies of the past.

“The Department of Justice is not a digital asset regulator. However, the previous Administration used the Department of Justice to pursue a reckless strategy of regulation through prosecution,” Blanche stated in the directive.

Blanche, who also notably served as Trump’s defense attorney during his 2024 criminal trial, clarified that the DOJ’s focus will now be redirected. Instead of targeting crypto platforms and the infrastructure that supports them—like exchanges, wallet services, and even privacy mixers such as Tornado Cash—the department will shift its resources.

Going forward, the DOJ will primarily concentrate on individuals accused of directly defrauding or causing harm to crypto investors.

NCET Shut Down After Three Years of High Profile Cases

Interestingly, the NCET, launched just three years ago under the Biden administration in 2021, has played a pivotal role in numerous high-profile crypto enforcement actions. This unit has been key in the prosecution efforts against:

• Tornado Cash: The privacy-focused crypto mixing service that faced accusations of facilitating money laundering.
• Avraham Eisenberg: The trader accused of exploiting a decentralized finance (DeFi) protocol, allegedly netting over $100 million.
• North Korean Cybercriminals: State-sponsored actors who stand accused of laundering substantial amounts of stolen crypto assets.

With its dissolution, the NCET’s shutdown signals a significant shift in how the federal government is approaching the regulation and enforcement of digital assets.

*This is not investment advice.