U.S. Department of Justice Policy Reversal

U.S. Department of Justice Disbands Crypto Enforcement Unit: Major Policy Shift in 2025

A New Chapter for Cryptocurrency Regulation in the U.S.

In a pivotal decision that could reshape the landscape of the digital assets industry, the United States Department of Justice (DOJ) has officially disbanded its National Cryptocurrency Enforcement Team (NCET). This marks a significant policy reversal and signals a shift toward a more lenient regulatory environment for crypto platforms.

U.S. Department of Justice Shifts Focus: From Platforms to Individuals

According to a new memo issued by Deputy Attorney General Todd Blanche, the U.S. Department of Justice will no longer pursue enforcement actions against cryptocurrency platforms based solely on the activities of their users—even when those activities include money laundering or sanctions violations.

Instead, the department’s priorities are refocused on prosecuting individuals who use digital assets to fund or commit serious crimes such as terrorism, narcotics trafficking, organized crime, hacking, and international cartel operations.

This change closely aligns with the crypto-friendly posture of former President Donald Trump, who has previously advocated for open access to blockchain technology and the rollback of what he considers excessive regulations in the digital asset sector.

Market Reaction: Bitcoin and XRP See Strong Gains

The crypto market responded positively to the news. Bitcoin surged over 3.5%, trading above $78,800, while XRP jumped more than 7%, crossing $1.88 for the first time in months. These movements contrast sharply with a downturn in major equity markets, suggesting that investor sentiment is increasingly bullish on crypto amid regulatory easing.

European Regulators Issue Crypto Risk Warning

While the United States loosens enforcement, the European Securities and Markets Authority (ESMA) has issued a warning about potential financial stability risks posed by the growing cryptocurrency market. ESMA emphasized that even though the crypto market remains relatively small, its growing integration with traditional finance could make it a systemic risk in the future.

What This Means for the Industry

The DOJ’s updated policy may foster a more innovation-friendly environment for blockchain developers, DeFi platforms, and crypto startups. However, the reduction in enforcement also raises concerns about potential abuse and a lack of oversight, particularly in areas involving illicit finance.

For institutional investors, this regulatory shift could make the U.S. more attractive as a hub for digital asset innovation, while also increasing the burden of internal compliance and monitoring.

Conclusion: A Defining Moment for U.S. Crypto Policy

The disbanding of the DOJ’s crypto enforcement team is more than just a bureaucratic change — it signals a foundational shift in how the U.S. government views and treats digital assets. By moving enforcement away from broad platform liability and toward individual accountability, regulators may be opening the door to a new era of blockchain growth and innovation.

For builders, investors, and everyday users, this is a moment to watch closely. The next few months will reveal whether this approach fosters the kind of sustainable, secure growth the crypto sector has long demanded — or opens the door to unintended consequences.

One thing is certain: the eyes of the world are once again on the U.S. as it redraws the lines between innovation and oversight in the digital age.

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