Deciphering the US Department of Justice's Stance on Crypto Regulation

The US Department of Justice recently disbanded its National Cryptocurrency Enforcement Team and announced it would no longer pursue 'regulation by prosecution' in the crypto sector. A memo signed by Deputy Attorney General Todd Blanche outlined the DOJ's new approach, stating that it would no longer impose regulatory frameworks on digital assets through litigation or enforcement actions. Instead, the DOJ will focus on prosecuting fraud and other criminal activities involving crypto, while avoiding cases that require determining whether a digital asset is a security or commodity. The move has raised concerns among lawmakers, with some expressing fears that it may lead to a lack of oversight in the crypto industry. However, legal experts suggest that the memo is not a binding document and may not significantly alter the types of cases the DOJ brings. The DOJ will continue to pursue cases involving fraud, money laundering, and other illicit activities, but may take a more nuanced approach to regulating the crypto industry.