The U.S. Department of Justice (DoJ) has disbanded its cryptocurrency enforcement unit, marking a significant development in the regulatory landscape for the crypto sector.
The decision was announced by Deputy Attorney General Todd Blanche in a memo to employees on April 7, stating that “The Market Integrity and Major Frauds Unit shall cease cryptocurrency enforcement in order to focus on other priorities, such as immigration and procurement frauds. The National Cryptocurrency Enforcement Team (NCET) shall be disbanded effective immediately.”
Blanche attributed this shift to orders from President Donald Trump and criticized the previous Biden administration for a “reckless strategy of regulation by prosecution.” He emphasized that the DoJ is not a regulator of digital assets, affirming that its role is not to regulate but to prosecute criminal activity.
Going forward, the DoJ will focus on prosecuting individuals who engage in criminal offenses involving digital assets, such as terrorism, narcotics and human trafficking, organized crime, hacking, and financial crimes by gangs and cartels. Blanche highlighted that the department will target “individuals who victimize digital asset investors, or those who use digital assets in furtherance of criminal offenses.”
This development comes as other regulatory bodies, including the Securities and Exchange Commission (SEC), have also shifted their approach under new leadership appointed by President Trump. Over the past two months, the SEC has reversed several Biden-era enforcement actions against major crypto firms, including Coinbase, Binance, Ripple, and Consensys.
The change in the DoJ’s approach has been welcomed by some in the crypto sector. Amanda Tuminelli, chief legal officer at DeFi Education Fund, described the update as having “very good vibes” and stated that “prosecution by regulation is over.” Paul Grewal, Coinbase’s legal chief, also hailed the guidance, noting that “the main justice has spoken.”
However, critics have raised concerns about potential conflicts of interest, pointing to President Trump’s involvement in the crypto industry through the TRUMP memecoin and business ventures via World Liberty Financials. Despite these criticisms, the move is seen as part of a broader shift in U.S. federal agencies’ approach to crypto oversight, moving away from aggressive enforcement and toward targeting clear criminal misuse.