The U.S. Department of Justice has announced the closure of the National Cryptocurrency Enforcement Team (NCET) as part of a shift in federal policy under President Donald Trump.
Closure of the National Cryptocurrency Enforcement Team
The National Cryptocurrency Enforcement Team (NCET) was created in 2021 under President Joe Biden. The team brought together lawyers from the DOJ’s cybercrime and money laundering divisions. Its main responsibility was to combat crypto-related crime, including prosecuting high-profile cases. One such case involved Avraham Eisenberg, who was found guilty of defrauding Mango Markets out of $100 million.
SEC Steps Back from Crypto Oversight
Meanwhile, this is not the only agency rolling back on crypto enforcement. In February, the Securities and Exchange Commission began to reduce its focus on its crypto division. Acting Chair Mark T. Uyeda led the changes, which included transferring Jorge Tenreiro, one of its leading crypto lawyers, to a different department.
New Direction for Cryptocurrency Regulation
The closure of NCET and the reshuffling at the SEC mark a significant shift in Washington’s stance on cryptocurrency. The return of Trump has brought a change in priorities, with enforcement taking a backseat to regulation, focusing on investor safety and encouraging innovation in the digital economy.
The closure of the teams and the change in regulatory priorities may lead to new approaches in managing digital assets in the U.S.
