- DOJ disbands NCET, shifting focus from crypto platforms to prosecuting individual fraudsters under Trump’s deregulatory stance.
- Trump’s 2025 executive orders aim to reduce crypto regulation and enforcement
- SEC and CFTC reportedly easing compliance expectations
The United States Department of Justice (DOJ) has officially disbanded the National Cryptocurrency Enforcement Team (NCET), a crypto criminal unit of investigation and prosecution. Deputy Attorney General Todd Blanche signed the directive via a four-page internal memorandum passed on Monday evening to the DOJ staff.
The NCET was established in 2021 under the Biden administration and was a joint task force consisting of DOJ attorneys from its money laundering and cybercrime divisions. The unit was a central figure in several major digital asset investigations, such as prosecuting Tornado Cash, a cryptocurrency mixer accused of enabling illicit transactions, and Avraham Eisenberg, who manipulated a trading protocol to steal over $100 million. On the other hand, the team worked together to track operations linked to laundering proceeds from North Korean crypto-related cyberattacks.
Shift in the DOJ’s Crypto Enforcement Priorities
Blanche insisted that federal prosecutors shift their focus to attorneys via internal memo. The DOJ will no longer prioritize actions against digital asset platforms like crypto exchanges, mixers, or offline wallets. Instead, the directive directs DOJ personnel to focus on people who defraud and scam digital asset investors.
Blanche said the DOJ is “not a digital assets regulator,” and its decision follows President Donald Trump’s January executive order on digital assets. The order sets a strategy to reduce regulatory uncertainty in the digital asset industry and to change the way the federal government enforces rules in the digital asset industry.
The disbandment of NCET reflects the rollback of the previous administration’s approach of shaping policy with enforcement and reliance on prosecution. DOJ officials involved in cases that are still under investigation have been instructed to coordinate with another unit relevant to their office or to transfer their caseload to a regional office, according to the nature of each case.
Impact of Executive Orders on Digital Asset Oversight
The move to dissolve the NCET aligns with the Trump administration’s broader policy to reduce crypto regulation. In January, Trump issued an executive order calling for federal agencies to reconsider their approach to digital assets and seeking to focus on establishing a more defined regulatory framework without relying on punitive enforcement measures.
Other key regulatory bodies have also been affected by this policy shift. According to the report, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have reportedly given internal guidance to relax compliance requirements for crypto firms in line with the administration’s views.
In March, Trump signed another executive order to create a strategic digital asset reserve. Shortly after, he met with the crypto industry in Washington, D.C., to discuss legislative and investment opportunities.
Reactions and Future Enforcement Landscape
The DOJ has not yet issued a public statement, leading some to wonder how future crypto-related investigations will be handled given the closure of NCET. If the DOJ does not have a specialized enforcement unit, responsibilities could be placed back on a cybercrime or financial fraud department within the DOJ.
However, the new DOJ tactics of prosecuting individual fraudsters instead of targeting infrastructure like mixers or wallets represent a big shift in enforcement. The pivot may lessen scrutiny on services previously accused of helping money laundering or avoiding financial regulations.
