Unpacking the DOJ’s Crypto Enforcement Memo

The Department of Justice has recently made a significant change in its approach to cryptocurrency enforcement by disbanding the National Cryptocurrency Enforcement Team, moving away from a focus on “regulation by prosecution.” This decision has raised concerns about its potential impact on prosecuting criminal activities in the crypto sector. While the DOJ’s memo highlights a shift in strategy, experts believe that cases involving fraud will still be actively pursued. However, the move has drawn criticism from prominent Democrats who fear it could enable criminal behavior in the cryptocurrency space. The memo also sets out limitations on charging specific violations and aims to avoid legal disputes over whether a digital asset should be classified as a security or commodity. Despite these adjustments, experts anticipate that the DOJ will continue to target crimes like drug trafficking and terrorism financing. This shift in enforcement strategy is aimed at providing more clarity for the cryptocurrency industry.