Trump Shuts Down Biden-Era Crypto Crime Unit as US Takes a New Approach to Digital Assets

In a major shift in US crypto policy, the Department of Justice (DoJ) has quietly shut down the National Cryptocurrency Enforcement Team (NCET), a unit launched in 2022 under former President Joe Biden to crack down on illegal activities involving cryptocurrencies. The disbanding was confirmed through an internal memo, as reported by Fortune, and is effective immediately.

This move comes as President Donald Trump pushes for broader crypto adoption in the US. With his second term in full swing, Trump is working to clear regulatory roadblocks and fast-track official crypto rules through executive orders. One such order calls for the establishment of strategic crypto reserves, while another directs lawmakers to finalize a comprehensive crypto framework by August.

The NCET was made up of experts in crypto, cybercrime, and financial law. Over the last few years, it led several high-profile investigations—such as those involving Tornado Cash, KuCoin, and other platforms tied to alleged money laundering, market manipulation, and unlicensed activity.

But now, according to a memo signed by US Deputy Attorney General Todd Blanche, the DoJ is stepping away from what he described as the “reckless strategy of regulation by prosecution” pursued by the previous administration. Blanche emphasized that the Justice Department should not serve as a digital assets regulator.

Any ongoing NCET investigations that do not align with the new crypto-friendly policies will be closed, the memo said.

The change in tone is part of a broader government-wide pivot. The US Securities and Exchange Commission (SEC), once highly sceptical of crypto, has now formed a new Crypto Task Force and even dropped several legal cases against crypto firms, signaling a more supportive stance.

As the US charts a new path for digital currencies, these latest developments mark a clear departure from the strict enforcement-led approach of the past.

News Source : “Information for this article was gathered from a variety of reliable news outlets.”