Crypto Crackdown: U.S. DOJ Shifts Focus Amid Policy Reversal

The U.S. Justice Department is reshaping its approach to cryptocurrency enforcement, narrowing investigations to target drug cartels and terrorists. Under directives from Deputy Attorney General Todd Blanche, policies introduced during Biden's administration are being reversed, aligning with President Trump’s pro-crypto stance and his personal investments in the sector.

The U.S. Justice Department is undergoing a significant shift in its approach to cryptocurrency enforcement. A memo from Deputy Attorney General Todd Blanche, reported by Reuters, reveals a decision to disband the National Cryptocurrency Enforcement Team (NCET) and narrow the focus of ongoing crypto investigations.

This directive aims to target criminal activities involving digital assets, such as drug trafficking and terrorism. Blanche criticizes the prior administration under Joe Biden for enforcing regulations through prosecution and emphasizes a pivot in strategy aligned with President Donald Trump's pro-crypto policies.

Under Trump, who is building his own crypto venture, initiatives to rein in the digital asset sector are being rolled back. The Justice Department will no longer target certain crypto services for acts of their users, marking a new era of regulations less focused on punitive measures against the industry.

(With inputs from agencies.)