The Trump administration has officially disbanded the National Cryptocurrency Enforcement Team (NCET), as outlined in a memo released by the Department of Justice (DOJ) on Monday. This decision is part of a broader initiative to dismantle the existing regulatory framework governing the burgeoning digital finance sector. Deputy Attorney General Todd Blanche announced that the NCET will be “disbanded effective immediately,” and emphasized that the Computer Crime and Intellectual Property Section (CCIPS) will now provide guidance to DOJ officials while collaborating with the crypto and digital asset industry.
In a significant policy shift, the DOJ has instructed the Market Integrity and Major Frauds Unit to cease all cryptocurrency enforcement actions. Instead, the unit will redirect its focus toward immigration and procurement fraud. The memo explicitly states, “The Justice Department will no longer pursue litigation or enforcement actions that impose regulatory frameworks on digital assets while President Trump’s actual regulators undertake this work outside the punitive criminal justice framework.”
This change aligns with a January executive order aimed at establishing “well-defined jurisdictional regulatory boundaries” to bolster U.S. leadership in the cryptocurrency space. The administration’s approach underscores a commitment to deregulation within the digital finance ecosystem.
Since resuming office, President Trump has emphasized the importance of government deregulation and has taken steps to create a government reserve of bitcoin, along with a comprehensive “digital asset stockpile.” Notably, he hosted a Crypto Summit at the White House last month, further illustrating his administration's focus on the integration of cryptocurrency into the national economy.
However, Trump's initiatives have not gone without criticism. Democrats have voiced concerns, suggesting that these efforts could enrich the President due to his significant investments in the cryptocurrency industry. Rep. Gerry Connolly (Va.), the leading Democrat on the Oversight Committee, expressed his apprehensions in a March letter to Treasury Secretary Scott Bessent. He remarked that “the creation of a strategic cryptocurrency reserve is poised to enrich the President and his closest allies at the expense of American taxpayers.”
This letter followed a month after multiple Republican senators raised alarms regarding the Securities and Exchange Commission’s (SEC) handling of a case against cryptocurrency company DEBT Box, accused of defrauding investors of at least $49 million.
According to the recent DOJ memo, the new focus will be on prosecuting individuals who victimize digital asset investors or exploit digital assets for criminal activities. This includes serious offenses such as terrorism, narcotics trafficking, human trafficking, organized crime, hacking, and financing for cartels and gangs. This shift highlights the DOJ’s intent to navigate the complexities of the digital asset landscape while aiming to protect investors and uphold the law.
