U.S. Department of Justice Dismantles Crypto Enforcement Unit in Major Shift Under Trump

The U.S. Department of Justice dismantled its National Cryptocurrency Enforcement Team in a move away from sweeping regulation and toward a narrower focus on prosecuting serious criminal activities involving digital assets, CNBC reported.

The change aligns with President Donald Trump’s pro-crypto policy agenda and underscores his administration’s commitment to roll back Biden-era regulatory actions.

DOJ Redirects Focus to Terrorism and Fraud

The decision, outlined in a late-night memo by Deputy Attorney General Todd Blanche, instructs federal prosecutors to concentrate their efforts on crimes such as terrorism financing, drug trafficking, and organized crime that use cryptocurrency as a tool, not the technology itself.

The Justice Department will no longer pursue cases against exchanges, mixers, tumblers, or wallet services unless there is clear evidence of willful wrongdoing. Routine violations of financial laws, such as operating without proper registration, will also be exempt from criminal charges unless intent can be proven.

Formed in 2022, the National Cryptocurrency Enforcement Team was a key part of the Biden administration’s effort to tackle illicit activity in the digital asset space. Its most notable case was against Binance and its founder, Changpeng Zhao, resulting in a $4.3 billion settlement and a guilty plea for anti-money laundering violations.

However, critics argued that the team’s actions blurred the line between law enforcement and financial regulation. Blanche’s memo directly accuses the previous administration of practicing “regulation by prosecution” and calls for that approach to end.

Support Roles, Not Enforcement

While the Market Integrity and Major Frauds Unit will exit the crypto space entirely, the DOJ’s Computer Crime and Intellectual Property Section will reportedly continue to provide internal support. That includes training and liaising with crypto industry stakeholders but not initiating cases.

Ongoing investigations that do not align with the department’s new priorities must be closed. The move effectively resets the federal government’s law enforcement strategy on cryptocurrency to focus solely on malicious actors using digital assets for high-stakes criminal activity.

President Trump has taken a vocal stance in favor of digital assets and has financial interests in several crypto ventures. Among them is World Liberty Financial, a yet-to-launch decentralized banking platform reportedly tied to the Trump family, which has raised over $500 million in token sales.

The DOJ’s realignment fits into a broader rollback of federal oversight. Since Trump took office, regulatory agencies like the SEC have paused or shelved multiple high-profile enforcement actions. Banking regulators have also eased restrictions, opening the door for Wall Street’s increased participation in crypto.