Trump Administration Scales Back Cryptocurrency Enforcement Efforts

The U.S. Department of Justice, under Deputy Attorney General Todd Blanche, has announced the disbandment of the National Cryptocurrency Enforcement Team (NCET), aligning with President Trump's directive to create 'regulatory clarity' for the cryptocurrency industry. Blanche criticized the prior administration's approach, describing it as a 'regulation by prosecution' strategy that harmed the crypto sector. Moving forward, the DOJ will focus on prosecuting individuals who defraud digital asset investors rather than targeting exchanges or other crypto infrastructure. This shift follows Trump’s increasing alignment with cryptocurrency advocates, including his personal investments and endorsements in the space. The NCET, established in 2021 during the Biden administration, was involved in several high-profile cases against crypto fraud. Observers note this change signifies a significant pivot in the federal government's regulatory stance on digital assets.