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Cryptocurrency Enforcement Team Disbanded as DOJ Alters Strategy

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In a move that could raise eyebrows across Washington and Silicon Valley, the U.S. Department of Justice has officially pulled the plug on its National Cryptocurrency Enforcement Team (NCET). If that sounds like a big deal, it is.

The DOJ says it’s shifting focus. Instead of going after crypto broadly, it’s now aiming more narrowly at people using digital assets for “serious” crimes, such as drug trafficking, terrorism financing, or hacking—not everyday developers building blockchain projects.

Deputy Attorney General Todd Blanche made it clear this isn’t about going soft—it’s about being strategic. He criticized past tactics as overly aggressive, saying the DOJ won’t continue what he called “regulation by prosecution.” From now on, if someone’s caught up in a crypto-related case without clear criminal intent, the department’s stance is: don’t bother.

DOJ Crypto Enforcement Team Cancelled: Implications for Crypto Platforms

This change could be a breath of fresh air for crypto platforms and developers who’ve spent the last few years nervously checking their inboxes for subpoenas. Under the new approach, tools like crypto mixers, cold wallets, or DeFi platforms won’t be punished just because bad actors used them—unless there’s proof the developers knowingly helped.

That’s a pretty big shift. It suggests the government is finally drawing a clearer line between tech infrastructure and criminal intent—something the crypto community has been demanding for years.

But it’s not without risk. Critics argue this opens the door for shady operators to exploit the space, knowing enforcement is being dialed back. For now, it’s a balancing act between encouraging innovation and maintaining basic accountability.

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The Politics Behind the DOJ’s Move to Disband the Cryptocurrency Enforcement Team

Let’s zoom out briefly; this isn’t happening in a vacuum.

The policy change aligns neatly with President Trump’s broader agenda to loosen regulations around crypto. And yes, it’s worth noting: the Trump family has skin in the game. Through ventures like World Liberty Financial and the launch of their own tokens ($TRUMP and $MELANIA), the family’s crypto involvement has caught the attention of lawmakers.

Democrats in Congress have asked the SEC to preserve any records related to those ventures, suggesting potential conflicts of interest. Whether or not those concerns lead anywhere, they fuel an already politically charged debate over crypto oversight.

Meanwhile, at the SEC, Acting Chairman Mark Uyeda has been easing off the gas pedal, too—dropping lawsuits against big-name exchanges like Coinbase and Kraken. The message from Washington is clear: the regulatory mood has changed.

How the Crypto Industry is Reacting to the DOJ Shutting Down Its Cryptocurrency Enforcement Team

Not surprisingly, reactions have been mixed. Some in the crypto world are celebrating the shift as long-overdue breathing room for builders and innovators. But others worry that too much leniency could make the space more vulnerable to scams, money laundering, or worse.

One case in particular stands out: Roman Storm, developer of the crypto mixer Tornado Cash. Storm’s been battling charges for allegedly enabling money laundering, but under the DOJ’s new lens, his defense, that he built a tool, not a crime ring—might gain more traction.

The DOJ’s shift signals a new chapter in how the U.S. handles crypto crime. Whether this leads to a more balanced and effective framework or just more confusion remains to be seen. For now, the crypto world is watching closely, knowing the rules of engagement just changed.

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Key Takeaways

  • The DOJ has officially shut down its National Cryptocurrency Enforcement Team (NCET), shifting away from broad enforcement across the crypto space.
  • Focus will now be on serious crimes like terrorism financing, drug trafficking, and cyberattacks—not everyday developers or infrastructure builders.
  • Deputy AG Todd Blanche criticized the prior approach as “regulation by prosecution,” signaling a softer, more strategic enforcement strategy.
  • Crypto mixers, wallets, and DeFi platforms won’t be targeted unless developers knowingly facilitated illegal activity.
  • Critics warn this could open the door for bad actors to exploit the reduced scrutiny.

The post Cryptocurrency Enforcement Team Disbanded as DOJ Alters Strategy appeared first on 99Bitcoins.

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