DoJ Disbands National Cryptocurrency Enforcement Team

In a surprising move, the United States Department of Justice (DoJ) has officially dissolved the National Cryptocurrency Enforcement Team (NCET). This decision, revealed through an internal memo from Deputy Attorney General Todd Blanche, marks a significant shift in the DoJ's approach to cryptocurrency-related crimes.

Controversy Over Regulatory Strategy

Blanche's memo criticized the Biden administration for leveraging the DoJ and the NCET in what he described as a "reckless strategy of regulation by prosecution." He emphasized the department's role should be focused on protecting digital asset investors from fraud, rather than acting as a de facto regulator of digital assets.

A New Direction for Crypto Enforcement

The dissolution of the NCET raises questions about the future of cryptocurrency regulation and enforcement in the U.S. With the team's attorneys now reassigned, the DoJ appears to be recalibrating its strategy towards individual prosecutions over broad regulatory actions.