Catenaa, Friday, April18, 2025-The US Department of Justice (DOJ) has issued a policy memo signaling a major shift in its approach to Crypto enforcement, stepping back from pursuing cases that act as de facto regulation and instead focusing on clear criminal conduct, according to the document released last week.
The memo ‘Ending Regulation By Prosecution‘, issued under Deputy Attorney General Todd Blanche, states the DOJ will no longer bring cases that impose “regulatory frameworks on digital assets,” leaving that role to agencies like the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The Biden administration’s earlier posture — described by Blanche as “regulation by prosecution” — is being phased out.
“The Department of Justice is not a digital assets regulator,” Blanche wrote.
Industry advocates welcomed the change, while critics warned it could embolden misconduct. Better Markets, a financial reform nonprofit, likened the memo to targeting street-level dealers while ignoring the criminal networks behind them.
The DOJ also disbanded its National Cryptocurrency Enforcement Team, a unit created in 2022 to tackle digital asset crimes. Defense attorneys are now pushing for investigations and charges to be dropped, citing the new memo. Some legal experts said several ongoing cases may not survive under the revised guidelines.
The shift may also influence civil agencies. Acting CFTC Chair Caroline Pham has expressed support, and the SEC has recently backed away from high-profile cases involving Coinbase, Kraken and others.
Still, legal experts warn the shift doesn’t amount to a free pass. “Statutes of limitations outlast administrations,” said attorney Katherine Reilly. “Enforcement isn’t over.”
