The U.S. Department of Justice has decided to disband the National Cryptocurrency Enforcement Team (NCET). This event reflects changes in the approaches to regulating the cryptocurrency sector.
Closure of the National Cryptocurrency Enforcement Team
Deputy Attorney General Todd Blanche announced the immediate closure of the NCET in a four-page memo reviewed by Fortune. This decision follows President Donald Trump's order aimed at providing 'regulatory clarity' in the cryptocurrency space.
Shift in Priorities for Crypto Investigations
In his memo, Blanche outlined key changes in the DOJ's approach to cryptocurrency investigations. Instead of targeting crypto platforms and infrastructure, the department will now focus on 'prosecuting individuals who victimize digital asset investors.'
DOJ's History of Cryptocurrency Enforcement
Prior to the dissolution of the NCET, the DOJ had implemented significant enforcement actions in the cryptocurrency realm. These included prosecuting fraud schemes, market manipulation, and unregistered exchanges. Notably, among the actions was the takedown of the Bitzlato exchange, which was accused of money laundering.
The dissolution of the NCET represents a significant shift in how the federal government will approach cryptocurrency-related crime, focusing on individual wrongdoers rather than the broader cryptocurrency service infrastructure.
