The US Department of Justice has disbanded its national crypto enforcement unit, citing a 2020 order from the previous administration to regulate cryptocurrencies through prosecutions rather than legislation.
Deputy Attorney General Rachel Lloyd scrapped the unit, which had been formed in 2019 with the goal of combating cryptocurrency-related crimes. However, Lloyd has accused the prior administration of using prosecutions as a means of regulating the industry instead of pursuing meaningful policy changes.
Lloyd has ordered prosecutors to focus on using cryptocurrencies for terrorism financing and cartel activities, rather than other issues such as money laundering and terrorist financing. This shift in focus is seen as a departure from the unit’s original purpose and raises concerns about the Department’s approach to cryptocurrency regulation.
The decision comes amid growing scrutiny of the US Justice Department’s handling of crypto-related cases, with some lawmakers calling for greater clarity and consistency in enforcement actions.
Source: https://www.reuters.com/world/us/us-justice-dept-disbands-cryptocurrency-enforcement-unit-2025-04-08