Introduction to Cryptocurrency Enforcement

The US Department of Justice has disbanded its unit focused on prosecuting cryptocurrency scams, known as the National Cryptocurrency Enforcement Team (NCET). This decision was announced by Deputy Attorney General Todd Blanche in a memo sent on Monday, as reported by Reuters.

Background of the National Cryptocurrency Enforcement Team

When the NCET was launched, its primary focus was on prosecuting cases involving the use of cryptocurrency in money laundering, fraud, and theft. Over the years, the Department of Justice has secured several high-profile wins in cases involving major cryptocurrency players such as Binance, Tornado Cash, and Bitfinex.

Shift in Cryptocurrency Policy

However, the dissolution of the NCET marks a significant shift in the government’s approach to cryptocurrency regulation, reflecting the current administration’s crypto-friendly attitude. Shortly after taking office, President Donald Trump signed an executive order aimed at encouraging the creation of blockchain networks. Deputy Attorney General Blanche cited this order as the rationale for disbanding the NCET and ordered the department’s cryptocurrency efforts to focus on individuals who victimize digital asset investors or use digital assets for criminal offenses such as terrorism, narcotics, and human trafficking.

Regulatory Changes

The US Securities and Exchange Commission has also been easing its regulation of cryptocurrency, including ending an enforcement case against Coinbase. Despite these changes, cryptocurrency remains a high-risk endeavor, with theft and other criminal activities still rampant at both the individual and national levels. Furthermore, the Trump family has a vested interest in promoting crypto operations, having taken over a crypto firm that raised hundreds of millions from token sales.

Conclusion

The disbanding of the NCET and the shift in regulatory approach towards cryptocurrency highlight the ongoing evolution of the government’s stance on digital assets. As the landscape continues to change, it remains to be seen how these developments will impact the security and legitimacy of cryptocurrency operations.