The US Justice Department announced its plans to disband the National Cryptocurrency Enforcement Team (NCFT), a unit established to investigate and prosecute illegal activities involving digital assets. The decision to disband NCFT aligns with President Trump’s directive to reduce regulatory oversight in the cryptocurrency sector.
Deputy Attorney General Todd Blanche communicated the decision in a memo to the Department of Justice, stating the move is effective immediately and emphasizing that future cryptocurrency-related investigations should concentrate on cases involving drug cartels and terrorist organizations. The decision to narrow the scope of federal enforcement reflects the current US administration’s broader agenda to ease regulations in various industries, including digital assets.
Considering the volatility of the crypto market and the number of frauds, critics argue that reducing the oversight could result in an increased number of crimes and frauds within this rapidly evolving market. Conversely, those favoring a less regulated market welcomed this decision, stating it would foster innovation and growth in the sector.
The disbandment of the NCET follows other recent actions by the administration to reshape the regulatory landscape for cryptocurrencies. Notably, the Securities and Exchange Commission (SEC) rescinded accounting guidance opposed by the crypto industry, signaling a departure from previous regulatory approaches.
As the Department of Justice shifts its focus, the long-term implications for the enforcement of cryptocurrency-related crimes remain uncertain. Observers will closely monitor how this policy change affects the prevalence of illicit activities in the digital asset space and the broader financial system.
“We should be going after bad guys. Not the developers of good tools that bad guys happen to use,” Peter Van Valkenburgh, the executive director of the advocacy group Coin Center, said on X in praise of Blanche’s memo.
Reuters – US Justice Dept disbands crypto enforcement team, citing Trump order