The United States Department of Justice has disbanded its National Cryptocurrency Enforcement Team (NCET). Deputy Attorney General Todd Blanche notified the agency staff about the shutdown decision via a four-page memo, as Fortune (media outlet) reported.
As the name implies, the NCET was a task force designed to investigate criminal misuse of crypto assets. The unit jointly comprised experienced prosecutors from the money laundering and cybercrime units. The team had played an active role in several high-profile cases involving crypto mixers and unlicensed money transmitting activities.
Why Dissolve NCET?
Blanche noted in the memo that the “Department of Justice is not a digital assets regulator.” He further suggested that the unit’s enforcement strategy in earlier years had stifled innovation within the crypto industry.
He also mentioned that the shutdown is part of the agency’s compliance efforts with the crypto-related executive order signed in January to establish regulatory clarity for the digital assets sector. Hence, the enforcement Unit was disbanded with immediate effect.
Notably, the decision to shut down NCET comes amid an internal review to reallocate resources and refocus priorities. Under the new policy, the department will concentrate on prosecuting clear cases of fraud and scams against crypto investors while reducing its probe over crypto platforms such as exchanges and digital wallets.
Meanwhile, the new change in strategy has fueled excitement in the crypto industry as users expect the development to reduce regulatory uncertainty for crypto companies operating in the U.S. However, others believe there should be a dedicated crypto enforcement unit to fight against financial crimes.
Another Task Force Emerges Under SEC
Another task force has emerged under the Securities and Exchange Commission (SEC), focusing on digital asset regulation under the current administration. The new unit, the Crypto Enforcement and Transparency Unit (CETU), collaborates with industry players to develop clear, practical regulatory frameworks.
The U.S. SEC leadership under the Trump administration has been friendly to the crypto industry. Several crypto-related legal cases have been dismissed or resolved, including actions against companies previously accused of unregistered securities offerings.
The friendly regulations have moved crypto firms eager to expand into the U.S., viewing the country once again as a promising region. This contrasts the previous years of aggressive legal crackdowns, which had driven some firms offshore. The more open-door policy echoes the words of the U.S. president about making the country the “crypto capital of the planet.”
