The U.S. Department of Justice (DOJ) has officially disbanded its National Cryptocurrency Enforcement Team (NCET), signaling a dramatic shift in how the federal government will approach digital asset cases going forward. This move, ordered by Deputy Attorney General Todd Blanche and aligned with President Donald Trump’s deregulatory agenda, marks the end of a centralized federal unit focused specifically on crypto crime. Here’s what you need to know about who will handle digital asset cases now—and what it means for the industry.
Formed in 2022, the NCET was the DOJ’s answer to the growing complexity and scale of crimes involving cryptocurrencies. The team played a central role in high-profile cases, including the prosecution of Binance and its CEO for anti-money laundering violations. However, as of April 2025, the unit has been dissolved, and its priorities have been restructured.
Who Handles Digital Asset Cases Now?
U.S. Attorneys’ Offices Take the Lead
Responsibility for prosecuting digital asset-related crimes now falls to individual U.S. Attorneys’ Offices nationwide. These offices will focus on serious criminal conduct involving digital assets—specifically, cases tied to:
- Terrorism financing
- Drug trafficking
- Human smuggling
- Organized crime
- Hacking and cybercrime
- Cartel and gang operations
- Investor fraud and scams
This decentralized approach means that local federal prosecutors, rather than a specialized national unit, will decide which crypto cases to pursue.
DOJ’s Computer Crime and Intellectual Property Section (CCIPS)
While the NCET is gone, the DOJ’s CCIPS will continue to provide guidance, training, and act as a liaison to the digital asset industry for DOJ personnel. However, CCIPS will not directly lead prosecutions except in cases that fall under its broader cybercrime mandate.
Financial Regulators for Civil and Regulatory Matters
Crucially, the DOJ will no longer pursue cases that amount to “regulation by prosecution.” This means that civil and regulatory oversight of digital assets—such as compliance with securities or banking laws—will be left to agencies like the Securities and Exchange Commission (SEC) and banking regulators. The DOJ will only intervene when there is clear evidence of willful misconduct or when digital assets are used to further serious crimes.
What’s Out: Regulatory Enforcement by the DOJ
The DOJ memo explicitly instructs prosecutors to avoid charging violations of financial laws (like unlicensed money transmission or unregistered securities offerings) unless there is proof of intentional wrongdoing. The department will also stop targeting crypto exchanges, mixing/tumbling services, and wallet providers for the actions of their users or for accidental regulatory breaches.
Why the Change?
This policy shift is part of a broader deregulatory push by the Trump administration, which argues that the previous approach of “regulation by prosecution” stifled innovation and overreached the DOJ’s mandate. The new focus is on prosecuting only the most serious criminal abuses of digital assets, while leaving routine compliance and regulatory matters to the appropriate agencies.
What Does This Mean for the Crypto Industry?
- Less centralized federal enforcement: Crypto-related crimes will be handled by local federal prosecutors, not a specialized national unit.
- Narrower DOJ focus: Only serious criminal cases—terrorism, trafficking, organized crime, and investor fraud—will be DOJ priorities.
- Regulatory matters shift to the SEC and others: Civil enforcement and compliance oversight will fall to financial regulators, not the DOJ.
- Industry should maintain strong compliance: Even with reduced DOJ oversight, effective anti-fraud and anti-money laundering controls remain essential, as cases of clear criminal intent will still be prosecuted.
With the NCET gone, U.S. Attorneys’ Offices now lead digital asset prosecutions, focusing on major crimes. The DOJ’s CCIPS provides support, while civil and regulatory oversight is left to agencies like the SEC. The DOJ’s new approach is narrower, aiming to balance crime prevention with fostering innovation in the digital asset sector