If you hold crypto, this is not background noise. It directly affects risk, scams, and how much protection you can realistically expect going forward.
The Department of Justice (DOJ) has halted multiple cryptocurrency investigations launched during the Biden administration and dissolved its national crypto unit focused on fraud and money laundering.
The decision was made by Todd Blanche, a former attorney for Donald Trump, while Blanche reportedly held up to $485,000 in crypto assets himself. Those assets were transferred to family members only after the enforcement decisions were made.
This is not a procedural adjustment. It is a structural shift in how the United States approaches crypto enforcement.
Why This Matters More Than It Sounds
This move aligns directly with Trump’s increasingly pro-crypto political strategy, which also includes the pardon of Changpeng Zhao, founder of Binance.
The message to the market is clear:
U.S. crypto policy is moving from aggressive enforcement toward accommodation.
That has immediate consequences.
The Upside: Why Markets Are Reacting Positively
First, regulatory pressure just dropped. For years, crypto companies have complained about “regulation by enforcement” instead of clear rules. Removing a dedicated DOJ crypto unit reduces the fear of sudden prosecutions.
Second, political clarity attracts capital. Investors prefer predictable environments. Whether you agree with the decision or not, the direction is now obvious.
Third, crypto has officially become a political asset class. When enforcement decisions are tied to election strategies, markets pay attention.
The Downside: The Risks Are Real
The biggest issue is enforcement capacity. Without a specialized DOJ unit, crypto fraud investigations will be slower, less coordinated, and less effective—especially against international scam networks.
Then there is the conflict-of-interest problem. A senior DOJ official halting crypto investigations while personally holding crypto assets undermines trust in the system. Even if technically legal, the optics are damaging.
Finally, scammers always move faster than regulators. When enforcement pulls back, scams increase. Not eventually. Immediately.
What This Means for You as an Investor
You should assume less protection, not more.
Regulatory oversight is no longer something you can rely on as a safety net. Every claim, partnership, audit, and promise needs independent verification. Projects that lean heavily on “regulatory friendliness” as a selling point should be treated with caution.
Responsibility is shifting away from the state and directly onto individuals.
This is not neutral policy. It is a political bet.
The U.S. is choosing innovation over oversight, speed over safeguards, and growth over protection.
That could fuel the next crypto boom.
It could also create the perfect environment for the next wave of large-scale scams.
Either way, passive trust is no longer an option.