The Justice Department of America closes its cryptocurrency fraud unit

o, Blanche stated that the decision was made to align with Executive Order 14178 issued by President Trump to provide clarity in enforcement policies and support a thriving digital economy. This move signifies a shift in priorities, as the department will focus on combatting other criminal activities such as immigration and procurement fraud.

The closure of the National Cryptocurrency Enforcement Team has raised concerns among experts in public corruption and transnational crime, who fear that critical resources will be diverted away from preventing criminals and corrupt entities from exploiting cryptocurrencies for illegal purposes. Nate Sibley, an anti-corruption expert, emphasized the importance of combating the illicit use of cryptocurrencies, particularly by adversaries seeking to launder money and evade sanctions. This decision could undermine efforts to target cartel finances and impose sanctions on countries like Iran.

The controversial rise of the “memecoin,” a token known as $TRUMP, has captured attention due to its significant price surge following Trump’s inauguration. Critics have raised ethical concerns, citing a potential conflict of interest for the president, as his administration’s pro-crypto stance could benefit the company associated with the token. Despite criticisms, Trump has shown support for cryptocurrency by establishing a federal Strategic Bitcoin Reserve and participating in the first White House crypto summit.

Moreover, the Securities and Exchange Commission has dropped multiple cases against crypto firms, signaling a shift in regulatory approach. Regulatory bodies like the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency have also pledged to change their evaluation criteria for banks, which could impact cryptocurrency start-ups. Binance, a prominent cryptocurrency exchange, has engaged in discussions with Treasury Department officials to seek the removal of a U.S. monitor overseeing their compliance with anti-money laundering regulations.

Additionally, Binance is reportedly exploring a partnership with the Trump family to list a new dollar-pegged stablecoin, potentially yielding significant profits. These developments reflect a broader trend of increased engagement and support for cryptocurrency within the U.S. government. Despite the closure of the Justice Department’s cryptocurrency fraud unit, the evolving landscape suggests a growing acceptance and integration of cryptocurrencies in government policies and practices.