The Trump administration seems to be taking a more aggressive stance on cryptocurrency regulation policies by abolishing the Justice Department’s (DOJ) National Cryptocurrency Enforcement Team (NCET). This particular move is a part of the memo released by Deputy Attorney General Todd Blanche and marks the initial phase of the indicated administration’s shift to ease everything as per the president’s campaign policies.
NCET’s Shift: Backtracking on Policy
The NCET, which was one of the focus groups under the DOJ umbrella created in February 2022, was in charge of controlling the criminal exploitation of cryptocurrency and digital assets. It employed prosecutors from the money laundering and cybercrime units within the DOJ and controlled many significant crypto cases like Tornado Cash, Avraham Eisenberg, and North Korean hackers. Reinforcement of crypto policies angered many Democratic congressmen who thought about trying to run in their domains. Anyhow, Blanche’s memo indicates the office is “effective immediately” defunct.
Trump’s Executive Order: The Cause for the Turn
Blanche cites the reason for dissolving NCET as due to President Trump’s January executive order. This removal seems to serve as the base of the wider crypto deregulation effort, marking a shift from proactive enforcement towards a more relaxed, minimal intervention approach.
A Review of Historical Actions: “Prosecution as Regulation” Condemned
In his memorandum, Blanche, also Trump’s 2024 trial attorney, took aim at his former President Biden’s administration for its aloofness towards crypto asset governing policies. He denounced what I would like to refer to as a ‘regulation through prosecution’ type of strategy: “The Department of Justice is not a digital assets regulator,” he said.
Prosecuting People Who Directly Harm Digital Asset Investors
Blanche seems twitched with bias to pursue prosecutions against people who inflict damages to digital asset investors. He does not enforce actions against crypto infrastructure such as exchanges, mixers, or offline wallets. This change shows a more precise approach as opposed to regulatory oversight.
Keeping Campaign Promises: Softening The Stance to Bitcoin
The decision is also part of the promises mega Trump made during his presidential campaign, tailored to set America’s reign over Bitcoin in control. In March he took an executive action putting aside some provisions of Bitcoin and digital assets creating a strategic reserve calling further confirming his presidency’s pro-crypto policies.
A Broader Trend: Under Trump, We Witness Crypto Deregulation
The decommissioning of the NCET fits within a larger context of under-regulated crypto currency activities under the Trump administration. The president has always been in support of an easier regime with digital currencies, claiming that it would result in heightened innovation and economic improvement.
The Effect on the Industry – A Wait-and-See Approach
The reaction from the digital currencies industry will likely be one of cautious hope. While the deregulation may improve the rate of enforcement innovation, there are still concerns about risks as well as the nature of the regulation that is bound to take place. What the long-term outcome will be for such a policy change is uncertain.
Conclusion: Untitled the Evolving Era of Crypto Regulation
The move by the Trump administration to decommission the NCET signifies the center of gravity in the attitude of the US government regarding crypto currency regulation. In all likelihood, this change will impact the industry deeply. The extent to which the change will strengthen the capricious crypto market or complicate matters further for regulators, custodians, and investors remains uncertain.
