In a sharp pivot from the previous administration’s approach, Deputy Attorney General Todd Blanche has announced the immediate disbandment of the Justice Department’s digital assets enforcement team.

In a memo to department staff, Blanche criticized the Biden-era strategy of “regulation by prosecution,” calling it reckless and poorly executed. He emphasized that the Department of Justice is not a financial regulator and will no longer pursue actions that impose regulatory frameworks on digital assets through criminal litigation.

Blanche outlined a new enforcement direction aligned with President Trump’s crypto-friendly stance, stating that investigations will now focus solely on prosecuting bad actors who defraud investors or use digital assets for criminal activities. As part of this shift, the DOJ will stop targeting crypto exchanges, mixers, offline wallets, or platforms for regulatory violations committed unknowingly by their users. Ongoing cases that do not match the revised priorities are to be closed.

The change reflects a broader reset in the U.S. government's relationship with the crypto industry under the Trump administration. Since taking office, Trump-aligned regulators have eased enforcement efforts and revised policies to support digital asset innovation. Notably, Trump and his family have shown personal enthusiasm for crypto, with both launching their own meme coins—though not without controversy, as $Trump saw a sharp decline following the release of First Lady Melania’s competing token, $Melania.