The Trump administration has disbanded a Justice Department unit responsible for investigating cryptocurrency crimes, citing the Biden administration’s aggressive stance on the industry. In a memo, Deputy Attorney General Todd Blanche criticized previous investigations as poorly executed and instructed prosecutors to focus only on crimes like fraud, drug trafficking, and terrorism.
The move is consistent with President Trump’s support for the crypto industry, as his family has business interests in the sector, including a venture called World Liberty Financial and a memecoin. The Securities and Exchange Commission has also scaled back enforcement actions against crypto firms, leading to staff departures and a reduction in staffing for a crypto enforcement unit.
Blanche’s memo accused the Biden administration of a “reckless strategy of regulation by prosecution” and instructed prosecutors to prioritize cases involving investor victimization, scams, hacking, and financing of crimes like fentanyl or human trafficking. The disbandment of the national cryptocurrency enforcement team and the shift in focus to immigration matters and contractor fraud indicate a significant change in approach.
The new directive aims to prevent cases like the one against Binance founder Changpeng Zhao for violating the Bank Secrecy Act. The Trump administration’s actions signal a departure from the previous administration’s emphasis on prosecuting cryptocurrency crimes, reflecting a broader shift in regulatory priorities.
Note: The image is for illustrative purposes only and is not the original image of the presented article.
