U.S. Justice Department disbands cryptocurrency enforcement team, shifts focus - BTC Hunts

The U.S. Department of Justice (DOJ) is dismantling its National Cryptocurrency Enforcement Team (NCET), marking a significant policy shift in its approach to regulating the cryptocurrency industry. This change comes as part of the Trump administration’s broader push to recalibrate U.S. regulatory priorities, aligning them with its stance on reducing oversight of the digital asset sector.

Deputy Attorney General Todd Blanche confirmed that the DOJ would no longer pursue complex crypto-related enforcement actions tied to banking and securities law. Instead, the department will target criminal activities that use digital assets, such as fraud, money laundering, and the financing of illegal activities like human trafficking and terrorism. Blanche stated in a memo to prosecutors, “The Department of Justice is not a digital assets regulator,” emphasizing the department’s move away from regulating the cryptocurrency market.

The decision follows a broader trend during the Trump administration to scale back regulatory actions on the crypto industry, a sector that has received considerable support from the administration. This shift contrasts with the Biden administration’s aggressive stance, which had utilized the DOJ and other agencies to crack down on crypto-related crimes. Under Biden’s tenure, the NCET was established to focus on entities such as exchanges, mixers, and wallet providers that could facilitate illicit activities. However, with the new directive, these entities will no longer be held accountable for actions stemming from their users or regulatory lapses.

While critics argue that this shift could reduce consumer protection, supporters, including privacy and crypto advocacy groups, see it as a step toward fostering a more business-friendly environment. The disbandment of NCET and the cessation of crypto enforcement by the Market Integrity and Major Frauds Unit are effective immediately, allowing the DOJ to redirect its focus to other priorities, such as immigration and procurement fraud.

This policy shift is expected to influence the broader regulatory landscape, with some industry experts viewing it as a potential opportunity for the crypto industry to grow with fewer governmental constraints.

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