US DOJ Shuts Crypto Enforcement Team as Regulators and Industry Pivot to Constructive Engagement

The US Department of Justice has disbanded the National Cryptocurrency Enforcement Team (NCET), an investigative unit established under the previous administration to tackle crypto-related financial crimes. An internal memo signed by Deputy Attorney General Todd Blanche announced the immediate closure of any ongoing NCET investigations that do not align with new policies. This decision comes amidst a broader regulatory recalibration in the crypto space, as the SEC has reversed its skeptical stance by forming a Crypto Task Force aimed at expediting rule-making and easing legal pressures on crypto firms. In tandem, leaders from key industry players such as Coinbase and Uniswap have joined discussions in the new roundtable initiative organized by the Crypto Task Force. Meanwhile, digital payment companies PayPal and Venmo are expanding their crypto offerings to include tokens like LINK and SOL. The move signals increased mainstream engagement and a shift towards more proactive regulatory oversight, potentially fostering a more stable and predictable environment for the sector.