The Department of Justice (DOJ) just shut down its National Cryptocurrency Enforcement Unit (NCET). This move is all part of the Trump administration’s plan to change how it handles crypto.
The DOJ’s Shift in Strategy
According to a recent report, the DOJ sent out a memo saying the NCET was being disbanded immediately. The memo criticized the previous administration’s aggressive approach to crypto regulation, calling it “regulation by prosecution.” Deputy Attorney General Todd Blanche explained that this was to comply with a Trump executive order aiming for clearer crypto rules. Instead of going after exchanges and wallets, the DOJ will now focus on prosecuting people who rip off crypto investors.
NCET’s Legacy
The NCET, formed in 2021 under the Biden administration, was a joint task force tackling major crypto cases, including the Avraham Eisenberg lawsuit and the Tornado Cash situation.
A Broader Regulatory Shift
This DOJ move is part of a larger shift. The Securities and Exchange Commission (SEC) has also reportedly scaled back its own crypto enforcement unit. They’re moving away from a heavy-handed approach and towards a more collaborative one. The SEC is even holding roundtables with major crypto companies to discuss future regulations. It seems like the focus is shifting from aggressive enforcement to creating clearer rules for the industry.
