The U.S. Justice Department has abruptly disbanded its National Cryptocurrency Enforcement Team (NCET) in a dramatic reversal of crypto oversight, signaling a new era of relaxed regulation under the Trump administration.
Why the DOJ Is Backing Off Crypto Enforcement
In a late-night memo obtained by Reuters, Deputy Attorney General Todd Blanche announced the immediate dissolution of NCET—a unit created in 2022 to combat crypto-related crimes like money laundering and fraud. The move follows President Trump’s executive order directing agencies to adopt a hands-off approach to blockchain technology.
Blanche accused the prior Biden administration of overreach, calling its strategy “reckless regulation by prosecution.” Under the new policy:
✔ Prosecutors must drop cases not tied to terrorism, cartels, or human trafficking
✔ Exchanges and wallet services won’t be targeted for users’ actions
✔ Regulatory violations require proof of willful misconduct to prosecute
The Binance Case and Trump’s Crypto Agenda
NCET’s high-profile prosecution of Binance—which led to CEO Changpeng Zhao’s guilty plea—now appears to be an outlier. The shift aligns with Trump’s campaign promise to make the U.S. the “crypto capital of the planet” and his family’s financial stake in the industry:
- The Trumps claim 75% of revenues from World Liberty Financial’s token sales
- Trump launched his own $TRUMP and $MELANIA meme coins pre-inauguration
Regulatory Dominoes Falling
The DOJ’s retreat mirrors broader deregulation:
SEC has paused key crypto cases
Banking regulators now permit crypto transactions
Mixers/tumblers (privacy tools) face no scrutiny
Critics warn this could embolden bad actors, while proponents hail it as a win for innovation.
What’s Next for Crypto?
With enforcement narrowing to only the most egregious crimes, experts predict:
➜ Surge in speculative crypto ventures
➜ Increased scam risks for retail investors
➜ Potential congressional backlash
The policy marks a stark departure from global trends toward tighter crypto oversight—and could redefine America’s role in the digital asset economy.
