Trump admin tells prosecutors to ease up on crypto enforcement

ABC News - Apr 8th, 2025
Open on ABC News

The Trump administration has decided to roll back its enforcement of cryptocurrency regulations by disbanding the National Cryptocurrency Enforcement Team (NCET). According to a memo from U.S. Deputy Attorney General Todd Blanche, federal prosecutors are instructed not to target virtual currency exchanges, mixing and tumbling services, and offline wallets for the actions of their end users or for unwitting regulatory violations. This move aligns with President Donald Trump's broader pro-crypto policies and represents a significant shift from the previous administration's approach to crypto regulation, which Blanche criticized as 'reckless' and poorly executed. The Justice Department will now focus on prosecuting individuals involved in criminal activities using digital assets, such as terrorism, drug trafficking, and organized crime.

The decision to disband the NCET and reduce regulatory enforcement marks a pivotal shift in U.S. policy towards cryptocurrency, highlighting the Trump administration's preference for a more relaxed regulatory environment. The change could potentially impact ongoing high-profile cases, such as those involving Tornado Cash and Avraham Eisenberg, suggesting a departure from the prosecution strategy under the Biden administration. This development could influence the crypto market by providing a more favorable environment for innovation while raising concerns about adequate oversight to prevent misuse of digital assets. Furthermore, the memo's criticism of the handling of cases like Sam Bankman-Fried's highlights tensions between different administrations over the approach to digital asset regulation and investor protection.

Story submitted by Fairstory

RATING

5.2
Moderately Fair
Read with skepticism

The news story covers a timely and relevant topic regarding changes in cryptocurrency regulation under the Trump administration. While the article effectively highlights potential policy shifts and their implications, it suffers from a lack of source diversity and transparency, relying heavily on an unnamed memo. The story presents a limited range of perspectives, primarily focusing on the Trump administration's stance without adequately exploring opposing viewpoints or broader context.

Despite these shortcomings, the article is generally clear and readable, making it accessible to a broad audience. It has the potential to spark interest and discussion among readers interested in cryptocurrency and regulatory developments. However, the lack of corroboration from additional sources and detailed background information may limit its impact and engagement.

Overall, the story provides a foundational understanding of potential changes in crypto enforcement but would benefit from more comprehensive sourcing and balanced perspective representation to enhance its credibility and depth of analysis.

RATING DETAILS

6
Accuracy

The story makes several factual claims that require verification, such as the disbanding of the National Cryptocurrency Enforcement Team (NCET) and the shift in focus of the Trump administration's crypto policies. The accuracy of these claims depends on the existence of an official memo from the U.S. Deputy Attorney General and confirmation of these policy changes. The story accurately conveys the potential shift in enforcement focus, but without access to the primary sources or official announcements, the factual basis remains partially unverified. Furthermore, the claim that the Trump administration's actions align with pro-crypto policies needs corroboration from official policy documents or statements.

5
Balance

The article primarily presents the perspective of the Trump administration's policy changes without sufficiently exploring opposing viewpoints or the potential implications of these changes. The story mentions criticism of the Biden administration's approach but does not provide a balanced view by including responses or perspectives from those who might support stricter crypto regulations. This lack of diverse viewpoints creates an imbalance, as the article leans towards favoring the Trump administration's stance without critically examining the broader context or potential downsides of easing crypto regulations.

7
Clarity

The article is generally clear in its language and structure, making it easy to follow the main points and claims. The narrative is logically organized, with a clear progression from the announcement of policy changes to the potential implications for major crypto cases. The tone is neutral, and the information is presented in a straightforward manner, aiding comprehension. However, the lack of detailed context and background information on the memo and the broader policy environment slightly detracts from the overall clarity.

4
Source quality

The article references a memo from the U.S. Deputy Attorney General, but it does not provide direct access to this memo or cite additional authoritative sources. The story relies heavily on this single source, which limits its credibility and reliability. Without corroboration from multiple sources or direct quotes from officials, the article's reliance on an unnamed memo diminishes the overall quality of the sourcing. This could lead to potential conflicts of interest or inaccuracies if the memo is misinterpreted or not representative of official policy.

4
Transparency

The article lacks transparency in terms of disclosing the methodology used to obtain the information and the context surrounding the memo's release. There is no explanation of how the memo was obtained or whether it is publicly available. Additionally, the article does not address any potential conflicts of interest or biases that might affect the impartiality of the reporting. This lack of transparency makes it difficult for readers to assess the reliability and context of the information presented.

Sources

  1. https://www.carltonfields.com/insights/publications/2025/trump-administrations-executive-order-on-digital-assets-a-significant-shift-in-u-s-crypto-policy
  2. https://bettermarkets.org/newsroom/la-times-op-ed-why-the-trump-administration-is-easing-up-on-crypto-crime-at-exactly-the-wrong-moment/
  3. https://www.moneylaunderingnews.com/2025/03/recent-developments-raise-significant-questions-about-the-future-of-regulation-and-enforcement-of-cryptocurrency/
  4. https://time.com/7200518/david-sacks-new-white-house-ai-crypto-czar-trump-administration/
  5. https://www.pillsburylaw.com/en/news-and-insights/cryptocurrency-digital-assets-trump.html