US Justice Department Disbanding its National Cryptocurrency Enforcement Team
The US Department of Justice (DOJ) is disbanding its National Cryptocurrency Enforcement Team and is pivoting to focus investigations on cryptos use in drug cartels and terrorist groups.
According to a memo from Deputy Attorney General Todd Blanche, prosecutors should focus on cryptos use in terrorism and cartels.
Department of Justice is Not a Digital Assets Regulator
The US Justice Department is disbanding its National Cryptocurrency Enforcement Team (NCET), narrowing its focus to investigating cryptos use in drug cartels and terrorist groups. Reuters and the Associated Press (AP) cited and reviewed a memo sent to prosecutors from Deputy Attorney General Todd Blanche. Blanche accused former Democratic President Joe Bidens administration of pursuing a reckless strategy of regulation by prosecution of the crypto sector.
In a press release, the Criminal Division of the US Department of Justice explained the NCET was established in February 2022 to address potential criminal misuse of cryptocurrencies and digital assets. Consisting of a team of attorneys from across the DOJ, including prosecutors with backgrounds in crypto, cybercrime, money laundering and forfeiture, the NCET investigated and coordinated large-scale operations against numerous large crypto firms, including Binance and Coinbase.
According to the AP, Deputy Attorney General Todd Blanche said in the memo:
The Department of Justice is not a digital assets regulator.
The disbandment is part of the Trump Administrations broader offerors to boost the crypto and digital asset industry while undoing the previous Administrations efforts to crack down on industry wrongdoers. The Trump Administrations efforts are mirrored in recent changes in the Securities and Exchange Commission (SEC).
A New Stance on Crypto
The scrapping of the NCET aligns with the Trump Administrations campaign promise and its agenda for the US, in which it prioritizes addressing illegal immigration, gangs, and drug-related crimes.
Trump also promised voters that he would make the US the crypto capital of the planet.
The AP reports that the Deputy Attorney General said the Biden Administration used the department to pursue a reckless strategy of regulation by prosecution, which was ill conceived and poorly executed.
According to Blanche, the department will prioritize investigations on individuals who victimize digital asset investors, or those who use digital assets in furtherance of criminal offenses such as terrorism, narcotics and human trafficking, organized crime, hacking, and cartel and gang financing.
Blanche reportedly said any ongoing investigation inconsistent with the new Administrations policy should be closed. Per the Reuters report, Blanche cited one of President Trumps executive orders as the basis for the DOJs pivot. Trumps executive order calls for the government to help ensure that individuals and private sector companies can access an open blockchain network without persecution.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Text source: Crypto Daily™
