The U.S. Department of Justice (DOJ) has disbanded its National Cryptocurrency Enforcement Team (NCET) in what was once seen as a central task force for the federal government on crypto matters—the four-page memo, released Monday evening by Deputy Attorney General Todd Blanche.
Blanche cited President Trump's January executive order as the catalyst for his decision.
Established in Feb. 2022, NCET was a regulatory authority that oversaw the criminal abuse of cryptocurrencies and digital assets. It brought together prosecutors from the DOJ's money laundering and cybercrime divisions.
It helped lead high-profile crypto cases, such as those around Tornado Cash, Avraham Eisenberg, and North Korean hackers. The unit is no longer running, "effective immediately," said Blanche.
Blanche, who also represented Trump as his key defense attorney in his 2024 criminal trial, wrote, "The Department of Justice is not a digital assets regulator," denouncing the department saying it was a "reckless strategy of regulation by prosecution" under the Biden administration.
According to statements, Blanche has asked DOJ staff to allocate resources to prosecuting those who directly damage digital asset investors and refrain from enforcement measures against crypto infrastructure like exchanges, mixers, and offline wallets.
This decision continues the overall momentum of crypto deregulation under the Trump administration.
On July 29, 2024, before the Presidential election, Donald Trump promised to make the U.S. the Bitcoin superpower of the world. Following on this promise, in March, President Trump signed an executive order establishing a strategic reserve for Bitcoin and digital assets.