The Trump administration is changing the way the United States handles cryptocurrency enforcement. In a sharp break from previous policy, federal prosecutors will no longer target crypto platforms, exchanges, or wallets for user behavior or accidental violations. Instead, the Department of Justice (DOJ) will focus only on individuals who use crypto for serious crimes.
This new direction marks a clear shift toward supporting the crypto industry. It also reinforces former President Donald Trump’s pro-crypto stance.
DOJ Shuts Down Crypto Task Force
Deputy Attorney General Todd Blanche announced the change in an official memo. He directed the DOJ to shut down the National Cryptocurrency Enforcement Team (NCET), a unit previously responsible for targeting crypto-related violations.
In the memo, Blanche criticized the DOJ’s earlier approach. He said the strategy of “regulation by prosecution” was both reckless and poorly executed. Rather than encouraging compliance, it created fear and confusion across the digital asset industry.
Blanche emphasized that the DOJ does not serve as a regulatory agency for crypto. Prosecutors, he argued, should not try to create rules through legal action. That role belongs to lawmakers and financial regulators—not criminal investigators.
Prosecutors Will Now Target Criminal Abuse
Moving forward, the DOJ will narrow its focus. Prosecutors will concentrate only on individuals and organizations that use digital assets for serious crimes. These include:
- Terrorism financing
- Drug and human trafficking
- Hacking and cybercrime
- Organized crime
- Cartel and gang-related operations
Blanche instructed attorneys to avoid targeting platforms or services that simply facilitate crypto transactions. As long as a platform does not knowingly support illegal activity, it should not face prosecution.
This approach reflects a significant philosophical shift. The DOJ is moving away from punishing platforms for what their users do and turning its attention toward actual bad actors.
Trump Administration Pushes for a Pro-Crypto Future
This enforcement rollback lines up with the Trump administration’s broader efforts to support cryptocurrency growth. During his term, Trump pressured the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to relax their oversight of digital assets.
He also established a digital asset reserve—another sign of his administration’s desire to integrate crypto into the larger economy.
Now, with the DOJ scaling back enforcement, the federal government is sending a strong signal. It wants to encourage crypto development, not stifle it with excessive legal threats.
High-Profile Crypto Cases May Be Affected
The policy change could impact several ongoing and recent prosecutions.
One example is the case against Tornado Cash. Authorities accused the crypto mixer of laundering over $1 billion in illicit funds. They linked the platform to North Korean cybercriminals. Under the new guidelines, prosecutors may need to show direct criminal intent by Tornado Cash, not just unlawful use by others.
Another case involves Avraham Eisenberg. In April 2024, a court convicted him of stealing $110 million through a market manipulation scheme. Eisenberg’s case centered around exploiting a loophole in a decentralized exchange. Prosecutors will now need to examine whether future market manipulation cases meet the DOJ’s stricter criminal criteria.
The same applies to Sam Bankman-Fried’s prosecution. As the founder of FTX, he faced charges tied to one of the largest fraud cases in crypto history. With the DOJ’s updated stance, his case—and others like it—may undergo further scrutiny or review.
Ending Regulation by Prosecution
By ending the practice of regulation by prosecution, the Trump administration hopes to create a more predictable and innovation-friendly legal environment.
This change signals a new chapter in the U.S. government’s relationship with digital assets. Crypto developers and entrepreneurs have long argued that unclear rules and aggressive enforcement have held the industry back. Now, they may finally get the regulatory breathing room they’ve been asking for.
At the same time, the DOJ will continue to pursue individuals who use crypto for illegal ends. The memo makes it clear: criminal activity won’t be tolerated. But platforms that operate in good faith and follow the law will no longer be treated like criminals themselves.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research before making any trading decisions.
