President Donald Trump has taken a decisive step to scale back the Justice Department’s reach into the cryptocurrency world. His administration told federal prosecutors to stop going after crypto platforms for crimes committed by their users and instead focus on actual criminals who exploit digital assets for terrorism, trafficking, or large-scale fraud.
This decision ends a years-long pattern of “regulation by prosecution” and draws a sharp line between law enforcement and industry regulation. Trump’s move seeks to protect lawful crypto innovators while keeping law enforcement focused on genuine threats.
DOJ Disbands Crypto Task Force to Stop Prosecutorial Overreach
Deputy Attorney General Todd Blanche issued a new memo that immediately shut down the DOJ’s National Cryptocurrency Enforcement Team (NCET). That task force previously led many of the government’s high-profile crypto-related investigations.
In the memo, Blanche argued that federal prosecutors shouldn’t act like financial regulators. He said enforcement teams had blurred their roles by trying to impose policy through criminal charges. Instead, he insisted that Congress and agencies like the SEC or CFTC should take the lead in setting clear digital asset rules.
By disbanding the NCET, the DOJ aims to remove confusion and reduce the threat of criminal liability for platforms simply offering blockchain-based tools.
DOJ Refocuses on Criminal Intent, Not Crypto Infrastructure
The new DOJ strategy prioritizes intent over infrastructure. Prosecutors will now concentrate on individuals and groups that use crypto for clear criminal purposes. The memo lists several key targets:
- Terrorist financiers using digital currencies
- Operators of drug and human trafficking networks
- Hackers launching ransomware attacks
- Cartel affiliates using crypto to launder money
- Members of organized crime rings transacting with digital assets
Exchanges, wallet providers, and privacy services like crypto mixers won’t face prosecution unless they knowingly support or enable criminal activity. This update gives law-abiding developers and businesses space to innovate without fearing unfair legal consequences.
Trump Continues His Crypto-Friendly Policy Direction
This latest directive aligns with Trump’s broader pro-innovation stance on blockchain and digital assets. During his presidency, he urged federal agencies to take a lighter regulatory touch and pushed back on aggressive crypto crackdowns.
His administration also explored a national digital asset reserve, signaling early interest in the long-term role of crypto in the U.S. economy.
By limiting the DOJ’s role to actual criminal enforcement—not industry governance—Trump continues to promote blockchain development without sacrificing national security.
DOJ May Revisit Ongoing Cases Under New Rules
This change could affect several high-profile federal crypto cases. Prosecutors may now need to revisit their legal strategies, especially when platforms weren’t directly involved in wrongdoing.
One example is the Tornado Cash case. Authorities linked the crypto mixer to over $1 billion in laundered funds, much of it tied to North Korea. But under the new directive, the DOJ must prove that Tornado Cash’s developers deliberately helped criminals—not just that bad actors used the service.
Another case involves Avraham Eisenberg, convicted of exploiting a DeFi protocol to extract $110 million. Although the DOJ built a strong case against him, future cases involving similar platforms may face new scrutiny under the revised framework.
The fraud case against former FTX CEO Sam Bankman-Fried might also undergo subtle shifts. Prosecutors must now focus more clearly on direct criminal conduct rather than broader concerns about platform governance or operations.
DOJ Prioritizes Real Threats While Easing Pressure on Builders
Trump’s policy shift doesn’t give crypto criminals a free pass. It still empowers prosecutors to charge those who weaponize blockchain for financial crime, cyberattacks, or terror funding. However, it stops the DOJ from treating developers and businesses like criminals unless they’re directly involved.
This realignment creates clearer rules and supports innovation while maintaining security. Prosecutors can still go after the worst offenders—without choking the entire ecosystem with fear.
By focusing enforcement where it counts, the administration hopes to reduce legal confusion and help the U.S. remain competitive in the rapidly growing blockchain economy.
Disclaimer: This article provides general information only and does not offer legal, financial, or investment advice. Always consult a qualified professional before making crypto-related decisions
