The U.S. Department of Justice has announced the dissolution of a unit focused on investigating cryptocurrency-related fraud, as the Trump administration shifts its approach to oversight of digital assets.
In a memo sent to Justice Department employees on Monday, Deputy Attorney General Todd Blanche stated that the National Cryptocurrency Enforcement Team (NCET) would be disbanded “effective immediately.” The move follows a broader policy shift signaled by President Donald Trump’s executive order, issued in January, aimed at changing the federal government’s stance on digital assets.
“The digital assets industry is critical to the nation’s economic development and innovation,” Blanche wrote in the four-page memo. He added that the Justice Department “is not a digital assets regulator,” and said the agency would refocus its enforcement efforts.
According to the memo, the department will no longer pursue actions that could be perceived as imposing regulatory frameworks on digital assets through criminal enforcement. Instead, investigations will be limited to cases involving direct harm to investors or the use of digital assets in criminal activities such as terrorism, narcotics trafficking, human trafficking, organized crime, hacking, and illicit financing.
The memo also instructed that ongoing investigations inconsistent with the new policy direction should be closed.
Blanche, who served as legal counsel to President Trump during his 2024 criminal trial, stated that the department’s actions align with the new administration’s executive order promoting access to open blockchain networks for lawful purposes.
Justice Department officials have not yet responded to requests for comment.
NCET was established under the Biden administration to combat the misuse of cryptocurrencies and digital assets in financial crimes. It was staffed by attorneys with expertise in cryptocurrency, cybercrime, and money laundering and led several high-profile investigations.
The dissolution of NCET comes as the Trump administration signals support for expanding the digital asset industry. President Trump has previously described his vision for the United States to become a leading hub for cryptocurrency innovation and has advocated for more favorable policies toward the sector.
In recent months, the Trump family has been involved in launching a cryptocurrency venture, World Liberty Financial, and has introduced a crypto token. According to public filings, the Trump family has a claim on a significant share of revenue generated by the token’s sales. In March, President Trump signed an executive order to create a strategic cryptocurrency reserve and convened a round-table discussion at the White House with leaders from the digital assets industry.
Get the latest supply chain report news insights at The Supply Chain Report. For international trade resources, visit ADAMftd.com.
#CryptocurrencyFraud #JusticeDepartment #CryptoRegulation #PolicyShift #TrumpAdministration #DigitalAssets #FinancialCrime
