Under President Trump’s administration, America’s cryptocurrency landscape is going through a dramatic shift. Just recently, the Justice Department actually disbanded its US Crypto Enforcement Team, marking a dramatic reversal in federal crypto policy within a few months. The deputy attorney general, Todd Blanche, circulated a memo instructing prosecutors to significantly scale back their efforts.

Key-Takeaways:

• The Trump administration has dismantled the US Crypto Enforcement Team, limiting investigations to cryptocurrencies linked to serious crimes.
• But the policy reversal comes as Trump pledges to turn the US into a ‘crypto capital of the planet’ — while members of his family have business interests within the crypto sector.
• Crypto exchanges and service providers are no longer subject to prosecution for users’ actions or unintentional regulatory violations.
• Only six months later, the enforcement change arrives, following economic turmoil triggered by Trump’s sweeping global tariffs that plunged the markets in a ‘Black Monday’ referred to as ‘Black Monday’ in April 2025.

From Regulation to Liberation

Trump’s support for the cryptocurrency and his endorsement of its services is a decisive action in line with his campaign promises of making the United States the “crypto capital of the planet.” Now that the administration is set to promote an environment of reducing regulatory interference when it comes to blockchain technology.

Under Biden’s administration, an aggressive enforcement team set up in February 2022 went after the biggest crypto players in cases. NCET initiated the investigations into Changpeng Zhao and Binance, which ultimately led to Binance and its founder, Changpeng Zhao, pleading guilty to violating anti-money laundering laws.

But the Trump administration does not view this in the same way. Blanche’s memo indicates that the Biden administration had a “reckless strategy of regulation by prosecution” against the digital asset sector. The government takes a completely new philosophical look at cryptocurrency with this perspective.

Personal Stakes and Policy Changes

The Trump family also has business interests in the cryptocurrency sector now. According to reports, the Trump family owns 75% of the net revenues raised through World Liberty Financial token sales. Before Trump’s inauguration he also launched his own cryptocurrency that appeared to be, which later functioned as an actual currency

It has raised questions regarding potential conflicts of interest when it comes to the policy shift. Nonetheless, the new approach of the administration is based on an executive order that encourages ‘open blockchain networks without persecution.’

Market Volatility and Economic Context

It is done during a time of great economic gloom. On April 7, 2025, just days before the announcement, global markets had a substantial crash nicknamed Black Monday. This downturn came after the administration’s application of sweeping tariffs against any countries it termed “Liberation Day.”

Other cryptocurrencies plunged more steeply than Bitcoin, by as much as 7.7% within the market event. Ethereum, Solana, and XRP lost approximately 20% of their value. However, their supporters believe Bitcoin has shown itself to be resilient to economic volatility in the past.

This policy shift removes a great deal of regulatory burden for cryptocurrency exchanges and service providers. The Justice Department will not chase down exchanges, offline wallets and so-called anonymity services (mixers and tumblers) for ‘acts of their end users or unwitting non-compliant behavior.’

In addition, prosecutors have been told not to place cases of regulatory violations under banking, securities, and commodities laws in court unless there is clear evidence of willfulness by the defendant. As such, crypto businesses’ regulatory environment in the United States is much more forgiving than that traditional businesses.

Conclusion: US Crypto Enforcement

The US Crypto Enforcement and the cryptocurrency industry have largely welcomed these enforcement changes. Those who support those measures for removing excess regulation say that it will release an explosion of innovation and economic growth.