Columbia Standard

U.S. Senators, led by Democratic Whip Dick Durbin of Illinois, are pressing the Department of Justice to reverse its decision to disband its National Cryptocurrency Enforcement Team (NCET) and relax enforcement on cryptocurrency-related crimes. In a letter to Deputy Attorney General Todd Blanche, the Senators expressed their concerns over these changes, which they believe could facilitate illegal activities.

The apparent shift in policy, following a memo issued on April 7, 2025, sets aside the enforcement of specific federal laws against firms handling digital assets. The letter highlights that this policy change includes relaxing regulations on mixers and tumbling services, tools often used to launder money through cryptocurrencies.

The Senators' letter states, "We write in response to your April 7, 2025 memo announcing your decision to give a free pass to cryptocurrency money launderers and to disband the DOJ’s National Cryptocurrency Enforcement Team ('NCET')."

The communication, also signed by Senators Mazie Hirono, Elizabeth Warren, Sheldon Whitehouse, Chris Coons, and Richard Blumenthal, further noted that the disbandment of NCET would decrease efforts against illegal activities involving cryptocurrencies. "Drug traffickers, terrorists, fraudsters, and adversaries will exploit this vulnerability on a large scale," write the Senators.

Since its establishment in 2021, NCET has brought significant results, collaborating with U.S. Attorneys’ offices to prosecute cases involving substantial sums of digital assets. Despite these successes, Deputy Attorney General Blanche indicated a shift in DOJ priorities toward other areas, such as immigration.

In 2023, the FBI estimated a $5.6 billion loss to cryptocurrency fraud, an increase of 45% from the previous year. Senators argue that DOJ's actions could further endanger consumers. "Your decisions give rise to concerns that President Trump’s interest in selling his cryptocurrency may be the reason for easing law enforcement scrutiny," the letter suggests.

The Senators have asked for a staff-level briefing to explain the rationale behind these decisions by May 1, 2025. They concluded their communication with a call to reconsider the DOJ's recent strategic changes.