In a major shift in U.S. enforcement policy, the Trump administration has directed the Justice Department to ease its focus on cryptocurrency-related crimes, including the dissolution of the National Cryptocurrency Enforcement Team (NCET). The move aligns with Trump’s stated objective of fostering a pro-crypto regulatory environment.
The NCET, established in 2021 under the Biden administration, was tasked with investigating illicit activity involving digital assets and coordinating federal efforts against crypto-related financial crime. Its disbandment signals a de-escalation of regulatory intensity that many in the industry have long advocated.
Under new guidance issued to federal prosecutors, enforcement actions against crypto exchanges and blockchain-based services are to be “prioritized based on clear criminal conduct” rather than technical violations or regulatory ambiguities. This marks a notable departure from the more aggressive posture adopted in recent years.
Crypto advocates welcomed the decision, arguing that it will foster innovation by removing legal uncertainty. “For too long, startups and exchanges have operated under the threat of arbitrary enforcement,” said the CEO of a U.S.-based exchange. “This move creates room for responsible growth while still targeting bad actors.”
However, critics warn that the rollback could embolden bad actors and weaken investor protections. “The NCET played a key role in holding scammers accountable,” said a former federal prosecutor. “Without it, there’s a risk of leaving the space vulnerable to exploitation.”
Still, the Trump administration maintains that enforcement will continue against fraud and money laundering, but with a more targeted, proportionate approach. The shift is widely seen as part of Trump’s broader appeal to pro-crypto voters and industry donors ahead of the 2024 election.
Shogun Lin
