Trump Dissolves DOJ Crypto Crime Fighting Unit Amid Push for Digital Asset Deregulation

The U.S. Department of Justice has quietly disbanded its specialized unit tasked with investigating cryptocurrency-related crimes, marking another step in the Trump administration’s broader effort to ease oversight of the digital asset industry.

In a memo circulated to staff on Monday evening, Deputy Attorney General Todd Blanche, who previously served as President Donald Trump’s defense attorney during his 2024 criminal trial, and according to Fortune, confirmed the immediate closure of the National Cryptocurrency Enforcement Unit. The decision aligns with a January executive order from Trump aimed at fostering what the administration describes as regulatory clarity for the crypto sector.

Blanche’s memo emphasized a shift in the Justice Department’s approach, stating that the agency’s role is not to regulate digital assets but to focus on prosecuting individuals who directly harm investors. This move follows a pattern of regulatory changes under Trump’s leadership, including directives to agencies like the Securities and Exchange Commission and the Commodity Futures Trading Commission to adopt a lighter touch with crypto oversight.

The administration has also taken proactive steps to position the United States as a global leader in digital finance, with Trump recently announcing plans for a strategic Bitcoin and digital assets reserve.

A Shift in Crypto Enforcement Priorities

Created in 2021 under the Biden administration, the National Cryptocurrency Enforcement Unit brought together prosecutors from the Justice Department’s money laundering and cybercrime divisions, alongside attorneys from various district offices.

The unit played a key role in high-profile cases, including investigations into Tornado Cash, a crypto mixing service used to increase privacy. The team also worked on cases involving North Korean operatives laundering proceeds from crypto hacks. Blanche’s memo instructed staff to pivot away from targeting crypto exchanges, mixers, or offline wallets, redirecting resources toward protecting investors from fraud and theft.

The dissolution of the unit comes as Trump doubles down on his vision to make America a hub for cryptocurrency innovation. In March, he hosted a summit in Washington, D.C., inviting prominent crypto executives to discuss legislative priorities. During the event, Trump reiterated his commitment to transforming the United States into a global powerhouse for Bitcoin and other digital assets, signaling a sharp departure from the enforcement-heavy approach of the previous administration.

While the Justice Department’s decision has sparked debate about balancing innovation with investor protection, it underscores the administration’s belief that deregulation will drive economic growth in the rapidly evolving crypto landscape.