US Justice Department shuts down crypto enforcement unit amid policy shift

This development signals a major shift in U.S. crypto policy, promoting a more industry-friendly approach that could significantly reshape the nation’s regulatory framework for digital assets moving forward

In a sweeping policy change, the US Department of Justice (DOJ) has dismantled its national cryptocurrency enforcement team, signalling a dramatic shift in the federal government’s approach to digital asset regulation. The decision was announced via an internal memo issued by Deputy Attorney General Todd Blanche, stating the unit is to be "disbanded effective immediately."

The move reflects the Trump administration’s departure from what Blanche described as the previous administration’s “reckless strategy of regulation by prosecution.” He criticized the Biden-era approach for attempting to enforce digital asset rules through criminal litigation, arguing that regulatory oversight should be left to dedicated financial agencies.

“The Justice Department is not a digital assets regulator,” Blanche emphasized. “Under President Trump’s leadership, we will not impose criminal consequences for regulatory ambiguities. Instead, our focus will be on protecting investors and prosecuting those who exploit digital assets for criminal purposes.”

DOJ refocuses crypto enforcement

The revised directive narrows the DOJ’s scope to cases involving direct harm to consumers or crimes committed using cryptocurrencies. Enforcement actions against exchanges, wallet providers, and blockchain services—particularly for user-led violations or accidental regulatory breaches—will no longer be pursued. Ongoing investigations not aligned with the new priorities have been ordered to shut down.

The decision aligns with broader efforts by the Trump administration to reset relations with the crypto industry. Regulatory bodies, including the SEC, have begun revising previous actions and easing restrictions. President Trump and his family have also taken personal interest in the sector, launching their own meme coins—though not without controversy.

This latest development marks a significant pivot in US crypto policy, reinforcing a more industry-friendly stance and potentially reshaping the regulatory landscape for digital assets nationwide.