Trump Administration Dissolves DOJ’s Crypto Unit Amid Regulatory Shift

The U.S. Department of Justice (DOJ) has officially disbanded its specialized unit tasked with handling crypto-related investigations. The move follows President Donald Trump’s rollback of digital asset regulations, signaling a significant policy shift.

In a four-page internal memo sent Monday evening, Deputy Attorney General Todd Blanche announced that the National Cryptocurrency Enforcement Team (NCET) was being dissolved “effective immediately.” Blanche noted that this step aligns with Trump’s January executive order on digital assets, which aims to provide “regulatory clarity” for the crypto industry.

“The DOJ is not a digital assets regulator. The previous administration misused it to carry out a reckless strategy of regulation through prosecution,” Blanche wrote.

NCET Was Established Under Biden

Founded in 2021 under President Joe Biden, the NCET was a joint task force made up of prosecutors from the DOJ’s money laundering and cybercrime divisions, along with attorneys from various district offices. The unit led several major crypto investigations, including those against Tornado Cash, a controversial crypto mixer, and Avraham Eisenberg, who exploited a trading protocol for over $100 million. NCET also spearheaded probes into North Korean actors involved in laundering stolen digital assets.

New Focus: Protecting Investors

In the latest memo, Blanche instructed DOJ staff to shift their attention toward “prosecuting individuals who victimize digital asset investors.” He added that the department would no longer prioritize cases targeting crypto exchanges, mixers, or offline wallets.

This decision is part of the Trump administration’s broader push for deregulation in the digital assets space. Previous actions included instructing civil agencies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to loosen crypto oversight.

The Vision: Making America the Crypto Capital

Trump has openly embraced pro-crypto policies. In March, he signed an executive order authorizing the creation of a strategic reserve for Bitcoin and digital assets. Just days later, he hosted a public summit in Washington, D.C., featuring prominent crypto industry leaders to discuss legislative priorities.

“I promised to make America the Bitcoin superpower of the world and the crypto capital of the planet,” Trump said during the summit. “And we’re taking historic action to deliver on that promise.”

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