According to a document released by the Department of Justice (DOJ) on Monday, the Trump administration disbanded the National Cryptocurrency Enforcement Team (NCET), detailing their intentions to eliminate regulatory framework for the expanding digital financial sector.
In his letter, Deputy Attorney General Todd Blanche announced that the NCET will be “disbanded effective immediately.” The Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) will collaborate with the crypto and digital asset industries and provide assistance to DOJ authorities.
The Market Integrity and Major scams Unit was also directed by the DOJ to cease enforcing cryptocurrency laws and instead concentrate on procurement and immigration scams.
The memo states that while President Trump’s real regulators carry out their work outside of the punitive criminal justice framework, the Justice Department will no longer pursue litigation or enforcement proceedings that have the effect of superimposing regulatory frameworks on digital assets.
According to officials, the modifications were made in order to adhere to an executive order issued in January that aims to establish “well-defined jurisdictional regulatory boundaries” in order to strengthen American leadership in the cryptocurrency industry.
Trump has made government deregulation a top priority since taking office again. He has also established a government reserve of bitcoin and a “digital asset stockpile.” Last month, he even held a Crypto Summit at the White House.
Trump’s actions have been criticized by Democrats, who claim that given his significant interest in the cryptocurrency business, the move will benefit him.
Rep. Gerry Connolly (Va.), the top Democrat on the Oversight Committee, wrote to Treasury Secretary Scott Bessent in March that the establishment of a strategic cryptocurrency reserve is set to benefit the President and his closest supporters at the expense of American taxpayers.
Several Republican senators expressed dissatisfaction with the Securities and Exchange Commission’s (SEC) handling of the investigation against cryptocurrency business DEBT Box, which is suspected of scamming investors of at least $49 million, a month prior to the letter’s release.
According to the letter released on Monday, the DOJ will now give priority to prosecuting individuals who harm investors in digital assets or those who use digital assets to support illegal activities like organized crime, hacking, terrorism, drug and human trafficking, and financing of cartels and gangs.
