Breaking NEWS: Trump Admin Shuts Down Crypto Crime Unit
In a sweeping policy reversal, the Trump administration has ordered the disbandment of the National Cryptocurrency Enforcement Team (NCET), a key unit responsible for policing the crypto industry. A memo from Deputy Attorney General Todd Blanche, reviewed by ABC News, instructs federal prosecutors to stop targeting crypto exchanges, mixers, tumblers, and offline wallets for actions committed by end users or accidental violations of regulations.
Why Was the NCET Disbanded?
The Department of Justice is not a digital assets regulator, the memo states. The decision aligns with President Trump's broader pro-crypto stance, which includes instructing the SEC and CFTC to ease regulations and creating a digital assets reserve. Blanche sharply criticized the Biden administrations crypto approach, labeling it as regulation by prosecution and poorly executed.
What Will Prosecutors Focus on Now?
According to the memo, DOJ efforts will now concentrate solely on individuals who use digital assets for serious criminal offenses, such as terrorism, drug trafficking, hacking, and organized crime. This signals a dramatic narrowing of the federal governments enforcement scope in the crypto space.
What Happens to High-Profile Crypto Cases?
The policy shift could impact several major cases, including the prosecution of Tornado Cash and Avraham Eisenberg, both previously pursued by the Southern District of New York. Blanches memo suggests these cases, which targeted crypto platforms and traders for regulatory violations and manipulation, may no longer align with DOJ priorities.
Was Sam Bankman-Fried Treated Unfairly?
Blanche also took aim at the prior administrations prosecution of Sam Bankman-Fried, suggesting the approach failed to account for crypto market fluctuations. He argued that calculating victim losses based on outdated crypto prices unfairly penalized defendants and prevented victims from reclaiming asset value gains.
What Does This Mean for Crypto in America?
This move marks a significant change in federal crypto oversight, signaling a more laissez-faire approach under Trump. With enforcement efforts now focused only on overt criminal conduct, the broader crypto industry may face less scrutinybut questions remain about investor protection and market integrity.
Read more: https://cryptoticker.io/en/breaking-news-trump-admin-shuts-down-crypto-crime-unit/
Text source: CryptoTicker
