The US Justice Department Disbanded Its National Crypto Enforcement Team
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
The US Department of Justice recently sent a memo to its employees in which Deputy Attorney General Todd Blanche stated that the national crypto enforcement team will be disbanded. The decision was effective immediately, and Blanche added that the Department of Justice is not a digital assets regulator, thus taking a swipe at the Biden Administration.
He noted that the prior administration used the Justice Department to pursue a reckless strategy of regulation by prosecution, adding further that this was not only ill-conceived but also poorly executed.
With the change in leadership and the country’s stance on cryptocurrencies, in general, the Justice Department has therefore decided to no longer pursue litigation of enforcement actions that have the effect of superimposing regulatory frameworks on digital assets. Blanche added that Trump’s actual regulators are already doing this work outside the punitive criminal justice framework. In other words, having the Justice Department do the same is at the very least redundant.
Trump’s Effect On The State Of Crypto In The US
Blanche continued to stress that Trump’s administration’s decision to embrace crypto could be critical to the country’s economic development. As a result, the department’s investigations and prosecutions involving cryptocurrencies shall focus on prosecuting those who victimize digital asset investors, or those who use digital assets to further criminal offenses.
In other words, the department will no longer pursue crypto exchanges, crypto mixers, or offline wallets because their users were the ones who decided to use them in a way that breaks the law, or because of “unwitting violations of regulations.”
Prosecutors across the country have also been instructed to close any ongoing investigations that do not align with these new priorities. Meanwhile, regulators, including the SEC, have been trying to reset their relationships with the crypto sector ever since Trump took office. There have been numerous reports of the SEC dropping ongoing cases against exchanges and various other crypto entities, and changing rules.
A lot of this crypto-friendly stance likely comes from the fact that Trump and his family themselves have been enthusiastic crypto adopters, and have grown to be major players in the industry. The president launched its own meme coin only days before the inauguration, and First Lady Melania did the same only days later.
