The U.S. Department of Justice (DOJ) has announced a major shift in how it handles cryptocurrency-related crime. Prosecutors have been instructed to stop targeting crypto platforms such as exchanges, mixing services, and wallet providers for illicit actions carried out by users. Instead, the DOJ will focus enforcement efforts on individuals who directly engage in illegal activity using digital assets.
The policy update was detailed in a memo by Deputy Attorney General Todd Blanche and is part of the Trump administration’s broader strategy to support the crypto sector. As reported by The Verge, the DOJ is disbanding its National Cryptocurrency Enforcement Team and scaling back prosecutions through its Market Integrity and Major Frauds unit.
While the DOJ will continue to pursue cases involving scams and criminal misuse of crypto, this change marks a move away from broad platform liability. Legal observers suggest this could affect ongoing prosecutions, such as those against developers of services like Tornado Cash — cases that previously focused on facilitation rather than direct misuse.
As Reuters notes, the new approach may open the door to more innovation in the space, while still holding bad actors accountable.
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