The DOJ shuts down the cryptocurrency crime unit, calling it a 'reckless strategy' of the Biden administration.

Todd Blanche, Deputy Attorney General of the United States and defense attorney for Donald Trump in 2024, has issued a memorandum directing the immediate closure of the cryptocurrency litigation division of the Department of Justice (DOJ). This move comes amid federal agencies beginning to adopt a more friendly approach to monitoring digital assets, according to a report by Fortune on Tuesday.

In a four-page announcement released on Monday, Blanche emphasized that cryptocurrency regulation goes beyond the scope of the DOJ's responsibilities. He criticized the previous government under former President Joe Biden for using the Department of Justice in a "reckless strategy" to control the blockchain industry through law enforcement measures. Blanche urged DOJ staff to focus on investigating bad actors and crimes targeting cryptocurrency investors, rather than targeting the entire industry.

The Biden administration previously established the National Cryptocurrency Enforcement Team (NCET) in 2021 as a coordinated legal group, including attorneys from the DOJ's cybercrime and money laundering offices. NCET has handled several high-profile cases, including the Tornado Cash money laundering and the $100 million Mango Markets exploit carried out by Avraham Eisenberg. Eisenberg was convicted of fraud last year, while the U.S. Treasury lifted sanctions on Tornado Cash following a court ruling.

Blanche's directive was issued in the context of federal agencies regulating cryptocurrency management strategies. In February, the U.S. Securities and Exchange Commission (SEC), under the leadership of acting Chairman Mark T. Uyeda, announced plans to downsize the agency's specialized cryptocurrency enforcement unit. Jorge Tenreiro, the SEC's leading digital asset expert, has been moved to a department responsible for maintaining computer systems as part of the restructuring process.

These changes mark a significant adjustment in how federal agencies approach cryptocurrency, especially as Donald Trump returns as the first president to publicly support cryptocurrency. In his campaign, the Republican leader committed to making the United States a global cryptocurrency hub. In March, Trump signed an executive order to establish a Bitcoin reserve fund while directing relevant agencies to create clear regulations for the digital asset market. Two stablecoin bills have been pushed forward from this effort, and many expect one of the bills to be presented to Trump's desk at the White House by the end of June, although the drafts still need to undergo significant revisions in the coming weeks.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making any decisions. We are not responsible for your investment decisions.

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Mr. Giáo

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