US Shuts Down National Cryptocurrency Enforcement Team Amid New Crypto Oversight Approach
The US Department of Justice (DOJ) has officially dissolved its National Cryptocurrency Enforcement Team (NCET), a division launched in 2021 to investigate crypto-related crimes.
The decision, which marks a significant shift in the federal government’s stance on crypto oversight, was revealed in an internal memo obtained by Fortune on April 8.
The End of NCET and its Focus Shift
Initially established under the Biden administration, NCET was designed to tackle high-profile crypto cases, including platform shutdowns like Tornado Cash and investigations into crypto activities tied to North Korean operatives. The team integrated experts from DOJ divisions such as cybercrime and money laundering, targeting illicit crypto activities.
However, with the department’s recent announcement, the focus has now shifted away from regulating the broader crypto industry. Deputy Attorney General Todd Blanche stated that the DOJ will no longer regulate the digital asset sector, as it is not a financial regulator. He criticized the previous administration’s reliance on litigation to create crypto rules and clarified that the DOJ’s efforts would now center on prosecuting criminal activities, particularly scams, fraud, and market manipulation, instead of targeting legitimate businesses or decentralized tools.
Recalibration Across Federal Agencies
This closure reflects a broader change in direction under President Donald Trump’s administration. Federal agencies, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), are reexamining their approach to digital assets.
For example, Acting SEC Chair Mark Uyeda recently announced that the SEC would be reviewing its existing policies, such as the Howey Test, to ensure they are aligned with the new administration’s priorities regarding crypto regulation.
Kosta Gushterov
Reporter at Coindoo
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