The US Ministry of Justice (DoJ) canceled its cryptographic unit on Monday, telling the staff that the DOJ “would shrink” its crypto application activities in accordance with the executive order of US President Donald Trump on digital assets, which is committed to establishing “regulatory clarity and certainty” of the cryptographic industry.
In his four -page memo to the staff entitled “End of regulations by pursuit”, the American deputy prosecutor Todd Blanche announced that the National Cryptocurrency Application team (NCET) – created in 2022 under the president of the time, Joe Biden – would be “dissolved to count immediately”.
“The Ministry of Justice is not a regulator of digital assets,” wrote Blanche in the memo seen by Coindesk. “However, the previous administration used the Ministry of Justice to continue an imprudent regulatory strategy by prosecution, which was poorly designed and poorly executed. The Ministry of Justice will no longer pursue disputes or application of actions which have the effect of superimposing regulatory executives on digital assets while the real regulators of President Trump do this work outside the framework of pumal criminal justice. “
Blanche informed the staff that the DoJ would no longer pursue an case against crypto exchanges, the mixture of services or offline wallets “for the acts of their end users or the involuntary violations of the regulations”. Staff were ordered not to charge regulatory violations in cases involving crypto, including violations of the Bank Secrecy Act (BSA), the transmission of money without license and other violations related to federal laws on securities and raw materials.
Instead, DoJ staff were ordered to concentrate their resources on “prosecution by people who victimize investors of digital assets” or who use crypto in the continuation of criminal activities such as terrorism or gang financing.
“The current surveys incompatible with the above should be closed,” wrote Blanche, adding that his office will work with the Doj’s criminal division to “examine the current cases for consistency with this policy”.
NCET is not the first federal working group in Federal Crypto to be dissolved since Trump took office in January. The American Committee Futures Trading Commission (CFTC) has reduced a certain number of specialized laws for application of the law, including a crypto -oriented team, only two as part of the interim president, Caroline Pham, to increase efficiency and “stop the regulations by the application”.
NCET has worked on many cases of high -level Crypto in the Doj in recent years, including Crypto Mixer Tornado Cash and several of its mango developers and markets, Avi Eisenberg, who faces the conviction later this week after being found guilty of fraud and market manipulation.
The memo occurs a week and a half after Trump Bitmex, the cryptographic trading platform of Trump, and its founders and senior executives following their accusations of guilty of guilt spent at the Secrecy Act bank.
