The post DOJ to End “Regulation by Prosecution” Narrows Crypto Enforcement appeared on BitcoinEthereumNews.com.

The US Department of Justice (DOJ) is stepping away from the previous administrations’ “regulation by prosecution” stance on cryptocurrencies. The DOJ announced that it will no longer pursue criminal enforcement actions that effectively impose regulatory frameworks on digital asset companies.  According to a new memorandum entitled “Ending Regulation by Prosecution,” the policy prioritized crypto fraud and the use of digital assets to commit terrorism, drug trafficking, computer crime and human smuggling. Prosecutors will not charge “regulatory violations” involving digital assets.  Trump Directs Federal Agencies to Promote Open Access to Blockchain Networks and Banking Services In a memorandum, the DOJ announced a significant policy shift, saying it would no longer pursue criminal enforcement actions that effectively impose regulatory frameworks on digital asset companies. The DOJ’s memorandum criticizes the previous administration’s “reckless strategy of regulation by prosecution” and formalizes its support for President Trump’s Executive Order 14178 (“Strengthening American Leadership in Digital Financial Technology.”) The policy shifts the DOJ’s focus to “end the regulatory weaponization against digital assets, ” reorienting its investigations and prosecution on defendants who cause financial harm to digital asset investors, consumers, and individuals who use digital assets to aid in criminal conduct. The memorandum essentially enforces Trump’s Executive Order 14178 and articulates the DOJ’s task under the EO. Emphasizing the Value of Digital Assets In the introduction of the memorandum, Deputy Attorney General Todd Blanche highlights the importance of the digital asset industry, explaining: “The digital assets industry is critical to the Nation’s economic development and innovation. Thus, as noted in Executive Order 14178, clarity and certainty regarding enforcement policy “are essential to supporting a vibrant and inclusive digital economy and innovation in digital assets.” President Trump has also made clear that “[w]e are going to end the regulatory weaponization against digital assets.” The memorandum underscores that the…

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Filed under: News - @ April 14, 2025 9:28 am