Trump Admin Dismantles Crypto Fraud Unit, Embraces Deregulation

The Trump administration has disbanded a Department of Justice unit focused on cryptocurrency fraud, ending what it terms “regulation by prosecution.” A memo from Deputy Attorney General Todd Blanche instructs prosecutors to halt actions imposing regulatory frameworks on digital assets, ceasing investigations into exchanges, mixers, and wallets for user actions. This shift aligns with Trump's recent pro-crypto stance, fueled by donations from crypto billionaires and his own crypto initiatives. Instead, the DOJ will prioritize prosecuting individuals using crypto for criminal activities like terrorism and drug trafficking. This deregulation raises concerns about potential risks and regulatory gaps.