The US Department of Justice (DOJ) has reportedly shut down the National Cryptocurrency Enforcement Team (NCET), its specialized division tasked with investigating crypto-related crimes.
The move, confirmed through an internal memo cited by Fortune in an April 8 report, reflects a significant shift in federal oversight of the emerging industry.
NCET’s closure
NCET was launched in 2021 under the Biden administration.
The team gathered experts from multiple DOJ divisions, including cybercrime and money laundering units, to pursue high-profile cases involving digital assets.
The task force involved enforcement actions targeting platforms like Tornado Cash and investigating crypto activity linked to North Korean operatives.
Deputy Attorney General Todd Blanche clarified the DOJ’s new direction, stating that the department’s focus now centers on prosecuting bad actors rather than the broader crypto industry.
He emphasized that the DOJ is not a financial regulator and criticized the previous administration’s approach of enforcing unclear crypto rules through litigation.
According to him:
“The Department of Justice is not a digital assets regulator. However, the prior Administration used the Justice Department to pursue a reckless strategy of regulation by prosecution.”
Considering this, Blanche has directed DOJ personnel to focus solely on targeting criminal activity within the crypto sector—particularly scams, fraud, and market manipulation—rather than scrutinizing legitimate entities such as crypto exchanges, wallet providers, or decentralized privacy tools.
US agencies rethink crypto oversight
The DOJ’s move is part of a wider recalibration across federal agencies as President Donald Trump seeks to create a more favorable environment for crypto innovation.
This has resulted in regulatory bodies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) reviewing their crypto policies to align with the new administration’s effort.
For context, Acting SEC Chair Mark Uyeda recently confirmed plans for a comprehensive review of existing policies, including the Howey Test, which determines whether a digital asset qualifies as a security.
According to Uyeda:
“The purpose of this review is to identify staff statements that should be modified or rescinded consistent with current agency priorities..
Mentioned in this article
Credit: Source link
