DoJ Disbands National Cryptocurrency Enforcement Team

The United States Department of Justice (DoJ) has officially dissolved the National Cryptocurrency Enforcement Team (NCET), a move reported by Fortune on Tuesday. This decision comes after a memo from Deputy Attorney General Todd Blanche was circulated among staff members.

Background and Formation of NCET

Established in 2022, the NCET was tasked with investigating criminal activities tied to cryptocurrencies and digital assets. The team comprised attorneys from various divisions within the DoJ, highlighting the department's initial commitment to addressing crypto-related crimes.

Regulatory Criticism Leads to Dissolution

In the memo, Blanche criticized the Biden administration's approach, accusing it of leveraging the DoJ, including the NCET, to enforce a "reckless strategy of regulation by prosecution." He argued that the department's focus should shift towards prosecuting individuals who exploit digital asset investors, rather than acting as a de facto regulator of digital assets.