In a significant policy reversal reflecting the Trump administration’s favorable stance toward digital assets, the U.S. Department of Justice has eliminated its specialized cryptocurrency investigation team. The decision represents the latest move in a broader government-wide shift in approach to cryptocurrency regulation and enforcement.
Immediate Termination of Crypto Enforcement Unit
On Monday evening, the Department of Justice notified its staff that it was disbanding the National Cryptocurrency Enforcement Unit (NCET), a specialized team established during the Biden administration to investigate and prosecute digital asset-related crimes. According to a four-page internal memorandum reviewed by Fortune, U.S. Deputy Attorney General Todd Blanche announced the immediate termination of the unit.
In the memo, Blanche—who holds the second-highest position within the Justice Department and previously served as President Donald Trump’s defense attorney during his 2024 criminal trial—articulated a clear change in enforcement philosophy: “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.”
The directive specified that the enforcement unit was disbanded “effective immediately” as part of broader departmental efforts to align with President Trump’s January executive order on digital assets. That executive order explicitly aimed to “establish regulatory clarity” for the cryptocurrency industry, signaling a more accommodating approach from the federal government.
When contacted about the decision, a Department of Justice spokesperson did not immediately respond to requests for comment.
History and Accomplishments of the Disbanded Unit
The National Cryptocurrency Enforcement Unit was established in 2021 under the Biden administration as a specialized task force bringing together expertise from across the Justice Department. The unit integrated prosecutors from the DOJ’s money laundering and cybercrime divisions alongside attorneys from various district offices across the country, creating a concentrated pool of expertise to address the unique challenges posed by cryptocurrency-related crimes.
During its operational period, NCET collaborated on several high-profile cryptocurrency cases that attracted significant attention both within the industry and among law enforcement agencies globally. Among these was the investigation into Tornado Cash, a cryptocurrency mixing service that scrambled digital funds to obscure their ownership and transaction history—a tool that raised concerns among regulators about potential money laundering applications.
The unit also played a central role in pursuing legal action against Avraham Eisenberg, a hacker who exploited vulnerabilities in a cryptocurrency trading protocol to extract more than $100 million in assets. Additionally, NCET led investigations targeting North Korean actors involved in laundering proceeds from cryptocurrency hacks, highlighting the increasingly sophisticated nexus between state actors and cryptocurrency-related crimes.
New Enforcement Priorities
Beyond simply dismantling the specialized unit, Blanche’s memorandum outlined a substantial shift in enforcement priorities for the Department of Justice regarding digital assets. The deputy attorney general specifically directed DOJ employees to focus their efforts on “prosecuting individuals who victimize digital asset investors” rather than pursuing enforcement actions against cryptocurrency exchanges, mixing services like Tornado Cash, or “offline wallets.”
This guidance represents a significant narrowing of the department’s enforcement scope in the cryptocurrency space, potentially limiting investigations to cases of direct fraud against individual investors while stepping back from structural or systemic oversight of cryptocurrency platforms and services.
Part of a Broader Administrative Strategy
The dissolution of the DOJ’s cryptocurrency enforcement unit does not appear to be an isolated decision but rather another element in the Trump administration’s comprehensive rollback of cryptocurrency regulations. Previous directives have instructed civil regulatory agencies, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), to adopt less stringent approaches to cryptocurrency regulation.
These policy changes align with President Trump’s increasingly explicit pro-cryptocurrency stance, which marks a notable evolution from his previously expressed skepticism toward digital assets during his first administration. In March, Trump signed an executive order authorizing the creation of a strategic Bitcoin and digital assets reserve, signaling federal support for cryptocurrency as a national asset class.
Shortly after issuing this executive order, the president invited prominent cryptocurrency industry executives to Washington, D.C., for discussions about legislative priorities. The meeting, which featured a public photo opportunity, underscored the administration’s efforts to build relationships with cryptocurrency industry leaders.
During this cryptocurrency summit, Trump articulated his vision for America’s role in the digital asset ecosystem: “I promised to make America the Bitcoin superpower of the world and the crypto capital of the planet,” the president declared. “And we’re taking historic action to deliver on that promise.”
Implications for Cryptocurrency Regulation and Enforcement
The disbanding of NCET raises significant questions about the future landscape of cryptocurrency enforcement in the United States. By removing a specialized unit with concentrated expertise in complex cryptocurrency investigations, the Justice Department may face challenges in addressing sophisticated digital asset crimes that require specific technical knowledge and experience.
The shift also signals a potential rebalancing of power among federal agencies involved in cryptocurrency oversight. With the DOJ stepping back from certain types of enforcement actions, regulatory authority may increasingly rest with agencies like the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), the SEC, and the CFTC—all of which have also received guidance to adopt more industry-friendly approaches.
For cryptocurrency businesses and investors, these changes suggest a more favorable regulatory environment under the current administration, potentially reducing legal uncertainties that have historically constrained industry growth. However, the long-term implications remain unclear, as enforcement priorities could shift in response to emerging challenges or high-profile incidents in the cryptocurrency market.
Industry Response and Future Outlook
While the cryptocurrency industry has generally responded positively to the Trump administration’s pro-cryptocurrency stance, the specific decision to disband NCET has yet to generate widespread public reaction from major industry figures or organizations. However, the move aligns with the sector’s frequent criticism of what many perceived as an overly aggressive enforcement approach during the previous administration.
As the Department of Justice implements this reorganization, questions remain about how existing investigations will be handled and whether the expertise developed within NCET will be preserved in other forms within the department. The impact on international cooperation in cryptocurrency enforcement—particularly in cases involving transnational criminal organizations, state-sponsored actors, or terrorist financing—also remains to be seen.
What appears certain is that the dissolution of NCET represents a tangible manifestation of the administration’s stated commitment to creating a more supportive environment for cryptocurrency innovation and adoption in the United States. Whether this approach will successfully balance the promotion of legitimate cryptocurrency development with necessary protections against fraud and illicit activity will likely be a defining question for cryptocurrency policy in the coming years.
Acknowledgment: This article was written with the help of AI, which also assisted in research, drafting, editing, and formatting this current version.
