n a surprise move that’s shaking up the crypto world, the Department of Justice (DOJ) U.S. has quietly disbanded its National Cryptocurrency Enforcement Team (NCET) — the unit that once led the government’s biggest digital asset crackdowns. The announcement came via a four-page internal memo sent late Monday by Deputy Attorney General Todd Blanche, who also served as Donald Trump’s defense attorney during his 2024 criminal trial.
“The Department of Justice is not a digital assets regulator,” Blanche wrote, criticizing what he called the previous administration’s “reckless strategy of regulation by prosecution.” The disbandment, he said, is part of the DOJ’s effort to comply with a January executive order from Trump aimed at creating “regulatory clarity” in the fast-evolving crypto space.
Formed in 2021 under President Joe Biden, the NCET brought together prosecutors from cybercrime, money laundering, and district offices across the country. The task force led investigations into several high-profile cases — from the crypto mixer Tornado Cash, to Avraham Eisenberg, who drained over $100 million from a trading protocol, to probes involving North Korean hackers laundering crypto from cyberattacks.
But that chapter is now officially closed. Instead of pursuing enforcement against platforms like exchanges or mixers, Blanche’s memo instructs DOJ officials to focus solely on prosecuting individuals who “victimize digital asset investors.” That means the DOJ will now take a backseat on broader crypto regulation, leaving that job to civil agencies like the SEC and CFTC — both of which have also been asked to ease up under Trump’s leadership.
This is just the latest in a series of crypto-friendly steps from the Trump administration. Back in March, Trump signed an executive order to build a strategic reserve of Bitcoin and other digital assets. Not long after, he invited top crypto execs to D.C. for a high-profile summit. I promised to make America the Bitcoin superpower,” Trump said at the event. “And we’re taking historic action to deliver on that promise.” With NCET gone and the regulatory tone softening, the U.S. may be entering a new era — one that’s less about enforcement and more about embracing the future of digital finance.
