Policy Shift in Cryptocurrency Investigations
In a significant shift in policy, the U.S. Department of Justice (DOJ) has announced the dissolution of its specialized unit focused on cryptocurrency investigations. Deputy Attorney General Todd Blanche articulated this decision in a detailed four-page memo, which has been reviewed by Fortune magazine.
Key Points from the Memo
Blanche emphasized that the DOJ does not function as a regulator of digital assets, pointing out that the previous administration misused the department to impose stringent regulations primarily through legal actions.
“The previous administration misused the department to impose stringent regulations primarily through legal actions.”
Blanche, who also serves as Donald Trump’s defense attorney in his upcoming 2024 trial, explained that this move aligns with the efforts to adhere to Trump’s executive order from January aimed at digital asset regulation.
Dissolution of the National Cryptocurrency Enforcement Unit
The abrupt disbanding of the National Cryptocurrency Enforcement Unit (NCET) is intended to provide clearer regulatory guidance for the burgeoning digital currency sector.
Focus on Fraud Prosecution
In light of this directive, Blanche urged DOJ personnel to redirect their focus towards prosecuting individuals and groups that defraud digital asset investors. He specifically instructed them to shift their efforts away from cases involving cryptocurrency platforms and related services, such as mixers like Tornado Cash and offline wallets.
This pivot marks a notable departure from the previous approach of aggressive enforcement against cryptocurrency entities, signaling a potential easing of regulatory oversight in the digital currency landscape.
