US Justice Department under Trump ceases investigations into cryptocurrency

The US Department of Justice has revealed its decision to scale down its efforts in investigating cryptocurrency fraud. Instead, the department will shift its focus towards other critical areas such as immigration enforcement, terrorism, and drug trafficking. Deputy Attorney General Todd Blanche emphasized President Donald Trump’s commitment to eliminating undue regulatory burdens on the cryptocurrency industry.

Blanche stated clearly that the Justice Department’s role is not that of a digital assets regulator. He further emphasized that the department will no longer pursue litigation or enforcement actions that seek to impose regulatory frameworks on digital assets. Trump’s administration aims to enforce financial laws through regulatory bodies outside the realm of punitive criminal justice.

As a result of these changes, the Justice Department will dissolve its National Cryptocurrency Enforcement Team (NCET) established during former President Joe Biden’s tenure. The team was established to investigate cases of suspected fraud and illicit financial activities related to cryptocurrency. Notably, NCET secured a conviction in its first case of cryptocurrency market manipulation against Avraham Eisenberg, who fraudulently minted $110 million in cryptocurrency.

Additionally, the team was instrumental in investigating major cryptocurrency firms like Binance and Tornado Cash, which was accused of money laundering on behalf of North Korea. In line with his overall goal to undo policies of the Biden administration, Trump is dismantling initiatives such as NCET, blaming the former president for a misguided approach of regulation through prosecution.

Trump has distanced himself from Biden’s scrutiny of the cryptocurrency industry, positioning himself as a supporter of digital currencies. Through Executive Order 14178, he revoked Biden’s call for responsible development of cryptocurrency and proposed the creation of a national digital asset reserve. This strategic reserve includes five prominent cryptocurrencies and aims to bolster their value. Trump also unveiled a “meme coin” and has business interests in the cryptocurrency firm World Liberty Financial (WLF).

Despite accusations of ethical concerns surrounding these ventures, Trump continues to champion the digital currency industry. During a White House Digital Assets Summit, he reaffirmed his commitment to making America a global leader in Bitcoin and cryptocurrency. Trump likened the government’s targeting of cryptocurrency firms to his own legal battles, drawing parallels between the investigations’ impacts on both industries.

Although the federal government has terminated various investigations into cryptocurrency businesses, the Justice Department will still prioritize cases involving illegal activities that harm digital asset investors and consumers, particularly those funding criminal enterprises. Cartels, drug traffickers, and terrorist groups that utilize digital assets for illicit activities will remain the primary focus of the Justice Department’s investigations.