- DoJ will disband its crypto enforcement unit.
- DoJ blamed the Biden administration for a ‘reckless strategy’ in crypto regulation.
The U.S. Department of Justice (DoJ) has folded its cryptocurrency enforcement unit, marking another win for the sector on the regulatory front.
In a memo to employees on the 7th of April, Todd Blanche, deputy attorney general, noted,
“The Market Integrity and Major Frauds Unit shall cease cryptocurrency enforcement in order to focus on other priorities, such as immigration and procurement frauds. The National Cryptocurrency Enforcement Team (NCET) shall be disbanded effective immediately.”
DoJ is not a ‘crypto regulator’
Blanche cited President Donald Trump’s orders and blamed the previous Biden administration for a “reckless strategy of regulation by prosecution.” He affirmed that DoJ was not a ‘digital assets regulator.’
Going forward, Blanche added, the DoJ will focus on,
“Individuals who victimize digital asset investors, or those who use digital assets in furtherance of criminal offenses such as terrorism, narcotics and human trafficking, organized crime, hacking, and cartel and gang financing.”
In the past two months, the new Trump-led SEC (Securities and Exchange Commission) has rolled back several Biden-era enforcement actions against crypto firms like Coinbase, Binance, Ripple, and Consensys, amongst others.
Reacting to the update, Amand Tuminelli, chief legal officer at DeFi Education Fund, termed it ‘good vibes,’
“The vibes here are very good. Prosecution by regulation is over.”
For his part, Paul Grewal, Coinbase’s legal chief, hailed the guidance, stating that the ‘main justice has spoken.’
That said, critics have slammed President Trump for conflict of interest in the sector through the TRUMP memecoin, and other ventures via World Liberty Financials.