The US Department of Justice (DoJ) announced the end of a division dedicated to overseeing the cryptocurrency sector. The information was published by Fortune on Tuesday (8).
Called NCET (National Cryptocurrency Enforcement Team), the unit was created in early 2022 during the Biden administration.
Prior to this, in February, the SEC also shut down the Cryptocurrency and Cybersecurity Unit (CACU), giving rise to another division focused on broader issues, from emerging technologies to various scams.
US ends war against the cryptocurrency sector
As in other announcements, the Trump administration criticized the actions of the Biden administration against the cryptocurrency sector. The statements below are from Todd Blanche, Deputy Attorney General of the US, and were published by Fortune.
"The Department of Justice is not a regulatory body for digital assets. However, the previous administration used the Department of Justice to pursue an irresponsible strategy of regulation through litigation."
One of the examples mentioned was the crackdown on Tornado Cash, a mixer built via smart contracts on Ethereum. The week prior, the OFAC (Office of Foreign Assets Control) had already removed Tornado from its sanctions list.
Given this, Blanche points out that DoJ officials should "prosecute individuals who harm investors in digital assets" and not exchanges, mixers like Tornado Cash, and offline wallets.
This change in posture is linked to Trump's promises to end the war against cryptocurrencies.
