The U.S. Department of Justice has announced a significant shift in its approach to digital asset enforcement. In line with Executive Order 14178 issued by President Trump, the Department will halt enforcement actions that effectively regulate digital assets through criminal prosecution. Instead, Federal Prosecutors will focus on individuals using digital assets to commit crimes including terrorism, organized crime, fentanyl trafficking, and fraud targeting investors. The Justice Department will no longer pursue cases against platforms or services, like exchanges, mixers, or wallets, for the actions of their users, unless the case directly involves malicious conduct or is consistent with new enforcement priorities.
As part of this policy change, the Department has shut down the National Cryptocurrency Enforcement Team (NCET) and reassigned resources, including ending crypto-related work in the Market Integrity and Major Frauds Unit. Prosecutors are directed to avoid filing charges based on technical regulatory violations unless clear, willful misconduct is present. Additionally, the Department plans to support legislative reforms that improve asset recovery for victims of crypto-related fraud. This restructuring aligns with President Trump's broader strategy to reduce what he described as the regulatory overreach of the previous administration and to foster a stable environment for the lawful use of digital assets.
