US DOJ Shuts Down Crypto Unit: Who Let the Banter Out? 😎

In a move that might make even the most jaded sitcom writer raise an eyebrow, the US Department of Justice (DOJ) has called it quits on the National Cryptocurrency Enforcement Unit (NCET). Apparently, following President Donald Trump’s playbook for digital assets became too much of a plot twist for them.

DOJ Disbands Crypto Enforcement Unit

Picture this: It’s Monday evening, the monkeys are clapping, and the DOJ tells its staff that the NCET—the squad that was supposed to keep the crypto wild west in check—is disbanded “effective immediately.” A snazzy four-page memo (yes, memo-length drama) revealed that the previous administration’s overzealous crypto crackdown was about as welcome as a clown at a board meeting. 🤡

US Deputy Attorney General Todd Blanche chimed in with, “The Department of Justice is not a digital assets regulator. However, the prior Administration used the Justice Department to pursue a reckless strategy of regulation by prosecution.” Translation: They’re ditching the drama and opting for a less reality-TV approach.

According to Blanche, disbanding the crypto enforcement unit is all part of the master plan to “comply with Trump’s January executive order on digital assets” and to finally bring in a semblance of clarity—like someone finally cleaning the clutter off the family room.

The memo also came with a friendly reminder for DOJ employees: Instead of picking on crypto exchanges, mixers, and “offline wallets,” focus on prosecuting the real digital asset tricksters. Because nothing says “efficient” like choosing your battles, right?

For those of you who missed the backstory, the NCET was a joint task force born in October 2021 during the Biden administration and kicked into gear in February 2022. It was staffed by a motley crew from the agency’s money laundering and cybercrime teams, with a sprinkle of other district attorneys thrown in for dramatic effect.

This was the team that handled some of the biggest crypto cases around, including the melodrama of the Avraham Eisenberg lawsuit and the infamous Tornado Cash, which recently got kicked off the US Department of the Treasury’s Office of Foreign Assets Control (OFAC)’s Specially Designated Nationals (SDN) list. Talk about a plot twist!

The US New Regulatory Era

This DOJ move is clearly following the script set by the Trump administration—it’s all about laying down clear regulatory guidelines to keep investors from dancing on the edge of disaster while giving the industry a nudge in a more “chill” direction. Apparently, the US Securities and Exchange Commission (SEC) is playing along, also shedding its previous “regulation by enforcement” wardrobe for something a bit more business casual.

Bitcoinist reports that the SEC downsized its special unit for crypto enforcement back in February. According to several sources, the team members have been shuffled off to other parts of the SEC, proving once again that even agencies know how to do a proper office reshuffle.

Originally created in 2017 during the first Trump stint, the SEC’s enforcement unit was once filled with energetic lawyers and staff, ready to tackle industry shenanigans. But under Gary Gensler’s watchful eye, this unit ballooned to 50 positions by May 2022, handling over 100 crypto-related cases during the Biden era—mostly for fraudulent and unregistered offers that made headlines.

Not to be left out of this regulatory makeover, the SEC, led by acting chair Mark Uyeda, introduced a Crypto Task Force helmed by Commissioner Hester Peirce. This task force promises to be “more enjoyable and less risky,” which might just be the crypto world’s version of converting a horror flick into a quirky indie comedy.

And hold on to your hats—the regulatory fun continues with four digital assets-dedicated roundtables coming up soon. According to recent buzz, industry giants like Coinbase and Uniswap Labs are expected to join the first roundtable on April 11. Grab your popcorn! 🍿

2025-04-09 15:45

DOJ Disbands Crypto Enforcement Unit

The US New Regulatory Era

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