US Justice Department Disbands Crypto Prosecution Unit Under Biden

NCET: Role and Achievements before Dissolution

The National Cryptocurrency Crimes Investigation Unit was established by the DOJ in October 2021 to enhance its ability to address threats posed by the use of cryptocurrencies in illicit activities such as money laundering, fraud, and terrorist financing. NCET brings together experts from multiple disciplines, including law, blockchain technology, and finance, to work with other law enforcement agencies to investigate and prosecute complex cases.

Over the past three years, NCET has achieved some notable results. The unit has been involved in major cases such as dismantling criminal networks that used cryptocurrencies to conceal illicit flows, and has assisted the DOJ in creating a clearer legal framework for the sector. However, NCET has also faced criticism from some groups in the cryptocurrency industry, who say that the unit’s crackdowns are sometimes too harsh, hindering innovation and the development of blockchain technology in the United States.

Trump's Executive Order and Policy Shift

The dissolution of NCET is not a surprise decision, but rather part of a larger strategy by the Trump administration to ease regulations on cryptocurrencies. Since his election campaign, Donald Trump has publicly pledged to make the United States a global hub for cryptocurrencies, in part by reducing regulatory hurdles facing the industry under Biden. The new executive order is a clear demonstration of this direction, with the goal of promoting the growth of domestic crypto businesses and attracting international investment.

The disbandment of NCET is seen as a strong signal to the crypto community that the Trump administration is willing to shift its approach from “strict regulation” to “encouraging innovation.” Instead of maintaining a dedicated unit focused on prosecution, the DOJ will likely shift to a lighter-touch approach to oversight, prioritizing collaboration with the industry to self-regulate and mitigate risks.

Impact on the Cryptocurrency Industry in the US

The decision immediately sparked mixed reactions. Many in the cryptocurrency community welcomed the Trump administration’s move, saying it would facilitate blockchain startups and strengthen the US’s position in the global technology race with countries like China and Singapore. Bitcoin and other major cryptocurrencies saw a slight increase in price following the news, reflecting investor optimism.

However, legal experts and some lawmakers have expressed concern that dissolving the NCET could leave a void in the fight against high-tech financial crime. Under Biden, the United States has seen a surge in cryptocurrency scams and ransomware attacks, costing billions of dollars each year. Without a dedicated force like the NCET, the DOJ’s ability to respond quickly and effectively to these threats could be impaired, especially as the cryptocurrency industry continues to expand.

The broader political and economic context

This event should be viewed in the context of the current political and economic situation in the United States. After taking office in January 2025, the Trump administration quickly implemented new economic policies, including imposing reciprocal tariffs on many countries to protect domestic production. In parallel, the loosening of regulations on cryptocurrencies seems to be part of a plan to make the United States an attractive destination for technology investors, especially when other markets such as Europe and Asia are tightening their management.

In addition, the decision to disband NCET could also be a way for the Trump administration to “undo” the legacy of Biden, who is seen as being tough on cryptocurrencies. This fits with Trump’s political strategy of making a clear distinction from his predecessor while also consolidating support from voter groups that support economic freedom and technology.

Challenges and prospects ahead

Despite the high expectations, the elimination of NCET poses a number of challenges. First, the DOJ will need to develop an alternative mechanism to ensure that illicit activities involving cryptocurrencies remain regulated. Second, the lack of a clear regulatory framework could leave the United States at a disadvantage in shaping global standards for the industry, especially as other countries move forward with legislation.

On the other hand, if the Trump administration succeeds in turning the US into a “cryptocurrency capital” as promised, this could usher in a period of strong growth for the domestic blockchain industry. Cryptocurrency businesses may shift their investments to the US, taking advantage of a friendlier regulatory environment to develop new products and services.

The dissolution of the NCET by the US Department of Justice is a significant event, marking a shift in the country's cryptocurrency regulatory policy. Under Donald Trump's leadership, the US is entering a new phase with a more open, but equally risky, approach. While the crypto community celebrates this victory, observers are still waiting to see whether the new administration can balance promoting innovation and protecting financial security. This event will not only affect the domestic market but also reshape the global cryptocurrency landscape in the coming years.