DOJShutdown

DOJ Shuts Down Crypto Enforcement Unit Following Trump Executive Order

In a major shift in U.S. cryptocurrency policy, the U.S. Department of Justice (DOJ) has officially disbanded the National Cryptocurrency Enforcement Team (NCET), effective immediately. This decision comes on the heels of a new executive order signed by President Donald Trump, signaling a dramatic change in how the federal government approaches crypto regulation and enforcement.

The Executive Order That Changed Everything

The executive order, issued in early April 2025, directs federal agencies to reduce regulatory overreach in the digital asset space, calling instead for a “pro-growth framework” that fosters innovation and entrepreneurship within the crypto sector. As part of this order, President Trump emphasized the need to “end the war on crypto,” framing it as a key part of his administration’s broader economic agenda.

The NCET, which was established in 2021 under the Biden administration, had been tasked with investigating and prosecuting crimes involving cryptocurrencies, including fraud, money laundering, and cybercrime. While the unit did achieve some notable convictions, it also drew criticism from within the crypto industry for its aggressive tactics and regulatory ambiguity.

DOJ Realigns Priorities

Deputy Attorney General Todd Blanche, who announced the DOJ’s decision, made it clear that the department will be taking a much more restrained approach moving forward. In a strongly worded memo, Blanche stated:

> “The Department of Justice is not a digital assets regulator. We will no longer engage in regulation by prosecution. Our focus must be on real crimes—not innovation.”

Blanche’s directive effectively ends the DOJ’s proactive targeting of crypto platforms and companies based solely on regulatory gray areas. Instead, law enforcement resources will now be reserved for clear-cut criminal activities, such as the use of digital currencies for terrorism financing, human trafficking, ransomware attacks, and large-scale fraud schemes.

A New Era for Crypto in the U.S.

The move has already begun to reverberate throughout the financial and crypto communities. For advocates of decentralized finance (DeFi), blockchain technology, and cryptocurrency innovation, the DOJ's announcement is being seen as a victory for common sense and economic freedom.

Industry leaders praised the administration’s stance, noting that the former enforcement model had created a chilling effect on investment and innovation. Many companies had avoided operating in the U.S. due to fears of unclear legal boundaries and sudden enforcement actions.

> "This is the clarity we've been waiting for," said one blockchain startup CEO. "Entrepreneurs can finally focus on building, rather than battling lawsuits or fearing subpoenas."

Critics Sound the Alarm

However, not everyone is pleased with the rollback. Some consumer protection advocates and lawmakers have expressed concerns that weakening enforcement might open the door for bad actors to exploit crypto systems more easily. They argue that while innovation is important, a completely hands-off approach could lead to increased fraud and financial instability.

Still, the administration maintains that law enforcement will continue to pursue individuals or groups who weaponize digital assets for criminal purposes. What’s changing, they argue, is the government’s relationship to the broader crypto ecosystem, which they now view as a strategic economic sector rather than a threat.

What This Means for the Future

This development represents more than just the closure of a DOJ task force—it signals a fundamental pivot in how the United States views cryptocurrency. With the federal government now stepping back from heavy-handed enforcement, the industry could see:

A surge in domestic crypto startups

Renewed interest from global investors

More pressure on regulators like the SEC and CFTC to adapt and clarify rules

Potential legislative efforts to codify Trump’s executive approach into law

As the 2025 election year unfolds, crypto is poised to become a key issue—both economically and politically.

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Conclusion

The dissolution of the NCET marks the end of an era of aggressive federal oversight in the crypto space. Whether this leads to a crypto renaissance in the U.S. or paves the way for new regulatory challenges remains to be seen. For now, the message from Washington is clear: crypto is no longer the enemy.

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