Trump Administration Disbands Crypto Enforcement Team, Shifts Focus to National Security

The U.S. Justice Department has officially disbanded its National Cryptocurrency Enforcement Team (NCET), marking a significant policy shift under President Donald Trump’s administration. This move, confirmed by a leaked memo from Deputy Attorney General Todd Blanche, indicates that crypto-related investigations will now be limited to cases involving national security threats such as terrorism, drug trafficking, and organized crime.

Launched in 2022 during President Joe Biden’s term, the NCET was tasked with targeting fraud, illicit finance, and compliance failures in the digital asset space. Its work included major prosecutions such as the Binance and Changpeng Zhao case. However, Blanche’s memo now accuses the Biden-era DOJ of following a “reckless strategy of regulation by prosecution.”

Effective immediately, any crypto investigations deemed inconsistent with the new Trump-era policy must be closed. The DOJ will prioritize probes that involve digital assets used in crimes like terrorism, narcotics trafficking, human exploitation, and cartel funding.

Blanche cited a Trump executive order that supports access to open blockchain networks without government “persecution.” This aligns with the Republican president’s campaign promises to make the U.S. a global crypto hub. The Securities and Exchange Commission (SEC) has paused several high-profile crypto cases, and banking regulators have eased restrictions on digital asset activities. Blanche further instructed DOJ staff not to prosecute exchanges or mixers unless there is clear willful intent to violate licensing or registration laws.

These changes come at a time when the Trump family has a growing stake in the crypto world. The family stands to earn up to 75% of net revenues from token sales of World Liberty Financial, a pro-Trump crypto initiative. Additionally, tokens like $TRUMP and $MELANIA were launched recently as digital representations of political support, not investment securities.

This rollback in enforcement could reshape the Trump crypto regulation landscape dramatically. While the DOJ still plans to pursue criminal cases involving digital assets, the disbanding of NCET removes a central pillar of regulatory pressure on the industry.

Crypto firms operating mixers, wallets, or exchanges may find relief under this new directive, especially if they were previously under scrutiny for inadvertent regulatory breaches. However, critics worry that this could reduce accountability and increase room for abuse in the digital finance space.

Industry insiders suggest this move will boost confidence among crypto investors and developers, though it also raises ethical and legal questions about government policy being influenced by personal financial interests.

The U.S. government is changing how it deals with crypto. The Justice Department has shut down its team that focused on crypto crimes. This shows that the Trump administration wants to focus more on national security issues instead of going after crypto exchanges and developers. Because of this, the U.S. might become a friendlier place for crypto businesses. As these changes happen, investors, lawyers, and crypto companies will be watching closely to see what Trump’s next steps will be.