- The U.S. Department of Justice has dissolved its National Cryptocurrency Enforcement Team (NCET), shifting its focus from regulating crypto companies to prosecuting fraudsters.
- This decision aligns with President Donald Trump’s push for simplifying digital asset rules and completely ending the “regulation by prosecution” approach used under the previous administration.
The US Department of Justice has reportedly closed its crypto crime unit, the National Cryptocurrency Enforcement Team. This decision shows a big step in how the government will handle crypto- related cases moving forward, as they take focus from companies to go after people involved in fraud.
On Monday evening, the U.S. Department of Justice announced to its team that it was shutting down the group, which was initially focused on crypto cases. According to a four-page note released by Fortune, Deputy Attorney General Todd Blanche explained the reason for this decision, claiming that the agency should not act as a watchdog for digital assets.
He also went on to criticize the previous government for using the department to push harsh legal actions in order to control the crypto space. The memo confirmed that the National Crypto Enforcement Team, one of the leading investigators in the field, officially ended the group right away.
This move follows President Trump’s order to make digital asset rules more straightforward and to stop what his team calls the “regulation by prosecution” used during Joe Biden’s time in office. In the memo, Blanche made it clear that the role of the Department of Justice is not to act like a regulator for crypto.
Moving forward, he stated that the department will only focus on people who scam or harm investors, instead of going after platforms, privacy tools like Tornado Cash, or other apps that let users hold their own crypto assets. Many have seen this step as part of Trump’s growing support for the crypto space and also a fulfillment of making the United States the crypto capital of the planet.
The Former DOJ’s NCET’s Formation and Actions
The NCET, which was created in 2021 during Biden’s term, brought together experts from different DOJ sections, including cybercrime and money laundering, to handle major crypto-related cases. The group took action against services like Tornado Cash and investigated crypto activities that were linked to North Korean agents.
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