The Trump administration has reportedly made a major move by dissolving the US Department of Justice’s (DOJ) National Cryptocurrency Enforcement Team (NCET).
This change, announced on the night of 7 April, represents a significant shift in how the federal government is handling cryptocurrency-related crimes and enforcement.
The DOJ’s decision to end the NCET, effective immediately, comes just a few months after President Donald Trump signed an executive order aiming to provide clearer regulations for digital assets. Deputy Attorney General, Todd Blanche, who issued the memo to DOJ staff, explained that the department is not a regulator for digital assets.
He criticised the previous administration under President Joe Biden for using the Justice Department to regulate cryptocurrency through legal action, which he described as a “reckless strategy”.
The memo also instructed DOJ employees to avoid pursuing cases against crypto exchanges, crypto mixers, or offline wallets, which had been a focus of NCET’s work.
Instead, the department is now to concentrate on prosecuting individuals who commit fraud or scams against crypto investors.
Blanche’s move marks a break from the strategy that was followed under the Biden administration. The NCET was originally formed in 2021 to investigate serious crypto crimes, such as money laundering and cybercrime.
The unit worked on high-profile cases involving companies and individuals like Binance, Tornado Cash, and Sam Bankman-Fried of FTX fame, as well as North Korean hackers linked to crypto-related attacks.
With the closure of the NCET, the DOJ’s focus on crypto-related investigations will now shift away from exchanges and mixers, and towards going after bad actors who directly harm crypto investors.
SEC hosts crypto roundtable
As the DOJ reduces its involvement in regulating cryptocurrencies, the Securities and Exchange Commission (SEC) is stepping up its efforts to establish clearer rules for the industry.
In light of the recent changes, the SEC has scheduled a roundtable discussion on April 11 to address key issues surrounding crypto trading and regulation.
The event, titled ‘Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading’ will feature executives from leading cryptocurrency companies. Panelists will include the Chief Legal Officer at Uniswap, Katherine Minarik, and the Vice President of Institutional Product at Coinbase, Gregor Tusar.
Other industry leaders joining the discussion will be the General Counsel at Cumberland DRW, Chelsea Pizzola, and the Head of Business and Revenue at FalconX, Austin Reid.
This roundtable is part of an ongoing series by the SEC’s Crypto Taskforce. The first roundtable in the series focused on the legal status of cryptocurrencies, while future events will address issues like tokenisation, custody of digital assets, and decentralised finance (DeFi).
The decision by the SEC to include executives from crypto companies such as Coinbase and Uniswap is notable because these companies have faced previous investigations under the SEC.
However, since Trump took office, the SEC has stopped pursuing these cases, signalling a shift in its approach to cryptocurrency regulation.
Under the Trump administration, the SEC is aiming to engage in discussions with industry leaders rather than taking an enforcement-heavy approach.
Trump had promised during his campaign to position the United States as a global leader in the cryptocurrency space. His administration’s regulatory changes, including the dismantling of the NCET, are consistent with that promise.
Trump has also directed federal agencies to develop clear rules for digital assets, which could foster innovation and investment in the sector.
Impact of regulatory shifts on crypto markets
The announcement that the DOJ is no longer actively pursuing cases against crypto exchanges and mixers has raised important questions about the future of crypto regulation in the US.
Analysts believe that the shift could affect institutional confidence in the market, as many investors are looking for more predictable regulatory frameworks before making significant investments.
Some market experts are optimistic that this move will lead to a reduction in regulatory burdens for crypto companies, which could encourage innovation and growth within the sector.
Others, however, are more cautious, warning that reduced oversight could lead to an increase in fraud and security risks, particularly in a fast-evolving market like cryptocurrency.
The shift in regulatory focus could lead to increased market volatility in the short term. Historically, news related to regulatory changes has had a major impact on crypto prices, and this latest announcement is likely to influence investor behaviour.
However, over the long term, some industry insiders believe the change could pave the way for further growth and technological advancements in the crypto space.
Bitcoin ($BTC), for example, is currently trading at $79,677.48, with a market capitalisation of $1.58 trillion, according to CoinMarketCap.
Despite a 12% drop in trading volume over the past 24 hours, Bitcoin has seen a slight rise of 3.20% in the past day, though it has experienced declines of 5.08% over the past week and 5.82% over the past month.
Industry reports suggest that the regulatory changes could encourage greater technological innovation. Developers and companies will likely look for new ways to comply with the shifting regulations while continuing to grow their businesses.
For example, some believe that the removal of regulatory obstacles might lead to new advancements in blockchain technology and new applications for digital assets.
A new approach to crypto regulation in the US
The dismantling of the NCET is just one part of the broader regulatory shift in the US. Under Trump’s administration, the government is taking a more hands-off approach to cryptocurrency.
This is in contrast to the previous administration, which pursued a more aggressive regulatory stance. President Trump has said that he wants to foster a crypto-friendly environment in the US to encourage investment and innovation in digital assets.
In January 2025, Trump signed an executive order creating the President’s Working Group on Digital Asset Markets, which aims to provide clearer regulations for the cryptocurrency industry by mid-2025.
The group, led by David Sacks, is working on creating a federal framework for digital assets that will provide clarity and reduce uncertainty in the market.
As part of the ongoing regulatory changes, federal agencies like the SEC have also scaled back their enforcement actions against crypto companies.
The SEC has dropped several investigations into firms like Coinbase and others, signalling that the government is no longer focused on aggressively prosecuting crypto-related activities.
Instead, the SEC is now focused on providing clearer guidance on what constitutes a security and what does not.
Recent statements from the SEC have clarified the status of certain digital assets. For example, the SEC has confirmed that meme coins are not securities and that stablecoins will not be regulated as such either.
This provides much-needed clarity for crypto investors and businesses, who were previously uncertain about how these assets would be treated under US law.
The shift in regulatory policies is also seen in the Office of the Comptroller of the Currency (OCC), which has reduced earlier restrictions on crypto-related activities for banks.
These changes signal a more supportive environment for cryptocurrencies and could help pave the way for greater mainstream adoption of digital assets.
As the Trump administration continues to ease crypto regulations, the crypto industry is bracing for what could be a period of rapid growth and innovation. While the immediate impact on markets remains uncertain, the long-term effects of these regulatory changes could be profound.
