• DOJ disbands its national cryptocurrency enforcement team.
  • Focus shifts to terrorism and fraud involving digital assets.

What happened: The national cryptocurrency enforcement team disbanded

On 8 April 2025, Reuters reported that the U.S. Department of Justice (DOJ) disbanded its National Cryptocurrency Enforcement Team (NCET), signalling a major shift in how federal prosecutors handle crypto-related crimes.

Deputy Attorney General Todd Blanche issued a memo instructing U.S. Attorneys’ Offices to lead digital asset cases, prioritising prosecutions of individuals who use digital assets for terrorism, narcotics trafficking, organised crime, hacking and cartel financing.

The memo criticised the previous administration’s “reckless strategy of regulation by prosecution” and directed prosecutors to drop investigations that do not align with the new focus unless clear evidence of criminal intent exists. Routine regulatory violations without intent will no longer face criminal charges. The change also ends crypto enforcement by the Market Integrity and Major Frauds Unit, which will now concentrate on broader fraud and national security matters. The directive aligns with President Donald Trump’s executive order advocating open blockchain networks and reduced punitive action against platforms and developers.

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Why it’s important

Disbanding the NCET marks a clear change in DOJ priorities. It reallocates resources from broad regulatory actions to cases involving terrorism and serious fraud. The new approach may ease pressure on exchanges and blockchain developers by limiting prosecutions to those with criminal intent. However, narrowing the mandate could leave gaps in enforcement against money laundering and low‑level fraud.

The shift reflects a broader policy to balance innovation and security in the digital asset space. Industry stakeholders and investors will watch for how U.S. Attorneys implement the directive. The change may influence global regulatory trends and set a precedent for other jurisdictions. Clear guidelines on enforcement scope can boost confidence among legitimate crypto businesses. At the same time, law enforcement retains tools to pursue high‑stakes criminal misuse of digital assets. This development underscores evolving government strategies in managing emerging financial technologies.