Background: NCET's Creation and Dissolution
In 2021, the Biden administration established the National Cryptocurrency Enforcement Team (NCET) within the DOJ to focus on complex investigations involving ransomware, cryptocurrency exchanges, and other illicit activities. At its peak, the unit coordinated closely with the FBI, SEC, and international partners, bringing high-profile charges against crypto firms and individuals, including cases against Binance and FTX.
However, under the second term of President Donald Trump, federal oversight of crypto took a sharp turn. On July 2, 2026, the DOJ officially disbanded the NCET, effective immediately. The dissolution was ordered by Deputy Attorney General Todd Blanche, a Trump appointee confirmed earlier in 2026. An internal DOJ memo notified staff of the decision, with remaining cases to be redirected to existing divisions within the Criminal Division.
Why the NCET Was Disbanded: Trump's Regulatory Pivot
The Trump administration views the dissolution as part of a broader effort to reduce what it considers overreach in crypto regulation. Todd Blanche publicly described the NCET as 'a reckless strategy from the prior administration that prioritized headlines over effective policy.' This decision aligns with President Trump's campaign promises to ease federal pressure on the crypto industry. In recent months, the administration has also softened the SEC's enforcement posture, scaling back investigations into several crypto companies.
The NCET had investigated major cases such as the ransomware attack on Colonial Pipeline and the collapse of FTX. With its dissolution, ongoing probes will be absorbed by other units within the DOJ's Criminal Division. No new dedicated crypto crime task force or replacement initiative has been announced.
Industry Reaction and Future Outlook
The crypto industry largely welcomed the move as a sign of friendlier regulatory conditions in the United States. Many executives and trade groups argue that the NCET's disbandment will reduce unnecessary scrutiny on legitimate businesses and foster innovation. However, some experts urge caution, noting that crypto-related crime remains a real threat and that the absence of a specialized enforcement unit could slow down investigations and potentially allow bad actors to operate more freely.
As of now, the DOJ has not announced any alternative structure. The NCET's dissolution represents one of the most significant federal crypto policy shifts under Trump's second term. How the government will address future crypto crimes and strike a balance between innovation and security remains to be seen. Industry participants are closely watching for further regulatory moves from the administration and Congress.