Former President Donald Trump has moved to significantly reshape how the U.S. government enforces crypto laws. His administration has directed the Department of Justice (DOJ) to halt broad investigations into digital asset platforms and focus only on cases involving clearly criminal activity.
This shift ends the practice of holding crypto services responsible for how others use their technology. Instead, the DOJ will now direct its energy toward individuals who knowingly commit crimes using digital currencies. Such as money laundering, cyberattacks, and terrorism financing.
The announcement marks a fundamental change in the government’s treatment of crypto platforms and aligns with Trump’s efforts to reduce what he sees as overregulation in the industry.
DOJ Shutters Crypto Task Force, Signals End to “Regulation by Prosecution”
A memo from Deputy Attorney General Todd Blanche made the policy official. In it, Blanche instructed federal prosecutors to dismantle the DOJ’s National Cryptocurrency Enforcement Team (NCET)—a unit that played a central role in crypto-related cases in recent years.
Blanche criticized the previous approach as an overreach. He argued that criminal enforcement had been wrongly used as a way to regulate an emerging sector. That model, often referred to as “regulation by prosecution,” created uncertainty for crypto firms and developers. According to the memo, only Congress and regulatory agencies—not prosecutors—should define rules for financial technology.
By dissolving the NCET and pulling back enforcement, the administration hopes to reduce legal risk for platforms and avoid punishing innocent players for the actions of criminals using their systems.
DOJ Refocuses on High-Level Criminal Activity
The DOJ’s revised policy makes a clear distinction: it will only pursue digital asset cases involving direct, intentional use of crypto in major crimes. That includes:
- Funding terrorist groups
- Operating drug or human trafficking rings
- Carrying out ransomware attacks
- Laundering money for gangs or cartels
- Facilitating organized crime
Crypto exchanges, wallets, and mixing services will no longer face charges simply for existing in the same ecosystem as illicit users. As long as they don’t actively assist criminals or knowingly break the law, they will not be targeted.
This shift is expected to ease pressure on businesses and developers who operate in the blockchain space. It also draws a firmer line between lawful innovation and deliberate abuse.
A Policy Consistent With Trump’s Pro-Crypto Agenda
This move is not isolated—it’s part of a broader pattern in Trump’s approach to digital assets. During his presidency, he consistently called for less red tape around crypto and urged financial watchdogs like the SEC and CFTC to avoid heavy-handed regulation.
His administration also initiated the creation of a national digital asset reserve—signaling a longer-term interest in blockchain’s potential role in the U.S. economy.
Now, by scaling back enforcement from the DOJ, Trump is continuing to frame himself as an ally to crypto entrepreneurs, investors, and innovators.
High-Profile Cases Could Be Reassessed\
The DOJ’s policy change could affect several recent enforcement actions.
One major case is Tornado Cash, a crypto privacy tool accused of helping launder more than $1 billion. Prosecutors linked the platform to North Korean cybercriminals. Under the new DOJ rules, officials may need to prove the platform’s operators were directly involved—merely being used by criminals won’t be enough.
Another is the conviction of Avraham Eisenberg, who exploited a DeFi trading strategy to extract $110 million. While Eisenberg acted independently, his case could fall into a legal gray area under the DOJ’s new narrow focus.
The fraud trial of Sam Bankman-Fried, former CEO of FTX, may also face new scrutiny. Although the scale of alleged wrongdoing was enormous, prosecutors will now have to draw a clearer connection between executive actions and specific criminal conduct.
A Deliberate Shift Toward Clarity and Innovation
This policy change sends a clear message: the DOJ will no longer criminalize the technology itself or its lawful users. Developers and platforms who build digital finance tools will no longer be penalized simply because others misuse them.
Instead, the federal government will direct its resources where they matter most—combating terrorism, trafficking, cybercrime, and large-scale financial fraud.
While critics may worry this leaves room for abuse, the administration argues that narrowing enforcement protects both civil liberties and innovation. Prosecutors will still take action against those who clearly violate the law. But they will no longer act as regulators filling in legislative gaps with indictments.
Disclaimer: This article is intended for informational purposes only and does not provide legal, investment, or financial advice. Readers should consult with qualified professionals before making decisions related to digital assets.