In a sweeping move, the Trump administration has instructed the Department of Justice (DOJ) to pull back from aggressive cryptocurrency enforcement. Federal prosecutors will no longer pursue platforms or service providers over indirect violations or user misconduct. Instead, DOJ will now focus its resources strictly on individuals who misuse digital assets to commit serious crimes.
This decision marks a major departure from past enforcement strategies. It also reinforces Donald Trump’s broader policy of supporting digital innovation and easing government oversight in the crypto space.
DOJ Shuts Down Dedicated Crypto Enforcement Unit
Deputy Attorney General Todd Blanche issued the directive in a recent memo. One of the most immediate changes includes the shutdown of the DOJ’s National Cryptocurrency Enforcement Team (NCET). This group previously led federal efforts to investigate and charge crypto-related offenses.
In the memo, Blanche condemned the prior strategy of “regulation by prosecution.” He called it a flawed and inconsistent approach that created confusion and uncertainty across the industry. The memo stressed that criminal prosecutors should not act as regulators. That responsibility, it said, belongs to lawmakers and dedicated financial agencies—not the DOJ.
By ending this enforcement model, the administration hopes to stop punishing platforms for unintentional infractions or for crimes committed by users beyond their control.
New Enforcement Focus: Direct Criminal Use of Crypto
The DOJ will now prioritize investigations involving the deliberate use of digital currencies for serious criminal purposes. According to the directive, this includes cases involving:
- Terrorist financing operations
- Drug and human trafficking networks
- Sophisticated hacking or cyberattacks
- Cartel or gang activity
- Organized criminal enterprises
Under the new rules, DOJ attorneys are no longer expected to go after wallet services, mixing platforms, or crypto exchanges just because bad actors use them. As long as these entities don’t actively help criminals or knowingly break the law, they won’t be charged.
This change gives the crypto industry a clearer framework. It draws a sharper line between illegal activity and everyday blockchain operations.
A Policy Consistent With Trump’s Crypto-Friendly Agenda
The new DOJ policy reflects Donald Trump’s ongoing efforts to encourage the growth of digital assets in the United States.
During his presidency, Trump called on financial regulators like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to soften their stance on crypto rules. His administration also created a national digital asset reserve, a move meant to signal long-term government interest in supporting blockchain innovation.
Now, by steering DOJ away from over-policing, Trump aims to give crypto developers and investors more room to operate without fear of legal overreach.
Ongoing Cases May Be Reconsidered
Several recent high-profile cases could be affected by the DOJ’s new guidance.
One involves Tornado Cash, a crypto mixing service accused of laundering more than $1 billion in digital funds. Prosecutors have tied the platform to North Korean hackers. With the new approach, the DOJ may need to prove Tornado Cash directly supported criminal conduct, not just that criminals used the tool.
Another notable case is Avraham Eisenberg, who was convicted in April 2024 of manipulating markets and stealing $110 million through a crypto trading exploit. Although Eisenberg acted alone, the broader scrutiny around crypto mechanics could now face tighter DOJ limits.
The policy might also influence how the department reviews the case of Sam Bankman-Fried, the former CEO of FTX. He was accused of orchestrating one of the most significant financial frauds in digital asset history. With the DOJ’s new narrow focus, prosecutors may need to reassess how they approach similar white-collar crypto crimes going forward.
New Guidelines Aim to Protect Innovation, Punish Criminals
The Trump administration’s memo signals a clear change in how the federal government interacts with the crypto space. Rather than chasing down technical violations or prosecuting third-party platforms, prosecutors will now reserve their efforts for those who clearly abuse digital finance systems for illegal ends.
By pulling back from prosecution-led regulation, the DOJ hopes to create a more transparent and innovation-friendly environment. This shift may ease industry concerns over unclear legal risks and give legitimate projects space to grow.
Still, the administration insists it won’t go easy on crime. Prosecutors will continue to charge those who use crypto to fund terror, exploit people, or damage national security. But the DOJ will no longer treat technology providers like criminals unless they’re directly involved.
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Always consult with a professional before making any decisions related to law or digital assets.
