President Trump is taking another step towards decentralisation by erasing away the National Cryptocurrency Enforcement Team (NCET), that was responsible for putting crypto leaders such as FTX founder Sam Bankman-Fried, Binance founder ChangPeng "CZ" Peng among many others behind bars.

This disbandment of the unit comes among the series of sweeping regulatory reversals under President Donald Trump, who made crypto-friendly the centrepiece of his 2024 campaign.

Since taking over the office, Trump has not only demanded the U.S Security Exchange Comission (SEC) to undo Biden's administration crackdown on the industry, but he made monumental shift towards shaping the national policies to be more crypto-friendly and even started his own crypto projects in recent years.

So what exactly is he trying to achieve this time?

The dissolving of the NCET

The NCET was created by the Biden Administration to combat cryptocurrency-related crimes, particularly targeting platforms that facilitated money laundering and other illicit activities.

The unit became operational in February 2022 and was instrumental in prosecuting high-profile cases like Tornado Cash, which allegedly laundered over $1 billion, and Avraham Eisenberg, convicted of a $110 million market manipulation scheme.

Despite its grandeur ambition, but the Trump Administration has on many occasions accused the Biden Administration of manipulating the NCET to pursue his own ambition of regulating and prosecuting the industry. To free the crypto industry from the shackles of these regulatory powers, the Trump Administration has demanded for the department to be dissolved.

The NCET's role of overlooking the crypto industry will be passed on to the U.S attorney's offices who will now take the lead on digital asset cases, focusing primarily on crimes involving terrorism.

According to the official memo released by the DOJ, future efforts will focus primarily on prosecuting individuals who victimise digital asset investors, or those how use digital assets in furtherance of criminal offenses such as terrorism, narcotics, and human trafficking, organised crime, hacking and cartels.

The DOJ also revealed that it would be closing all ongoing investigations that do not align with the new priorities. The organisation also made it clear that it will no longer pursue enforcement actions against crypto exchanges, mixing and tumbling services, or offline wallet providers for the activities of their users or for "unintentional regulatory violations" — a significant shift from its previous enforcement stance.

Trump’s Pro-Crypto Vision

Since returning to office, President Trump has actively championed cryptocurrency adoption. This move aligns with Trump's executive order advocating open access to blockchain networks and reflects his administration's broader support for easing restrictions in the digital asset industry.

Trump’s pro-crypto stance extends beyond policy. His family has been involved in various crypto projects, including the World Liberty Financial decentralized finance (DeFi) protocol and the TRUMP memecoin. These ventures have sparked criticism over potential conflicts of interest and allegations of insider trading.

Despite its ambitious goals, critics have often accused Trump of pursuing all these initiatives primarily for his own financial interest. For instance, concerns have been raised about World Liberty Financial’s USD1 stablecoin potentially complicating bipartisan efforts to regulate stablecoins in Congress. In March, five Democratic senators urged regulators to investigate potential conflicts of interest tied to these projects.

Additionally, some lawmakers fear that deregulating the crypto industry could undermine consumer protections.

A New Era for U.S. Crypto Policy

The disbandment of NCET underscores a broader shift in U.S. crypto policy under President Trump’s leadership. By prioritizing deregulation and innovation, his administration aims to position the U.S. as a global leader in digital assets. However, this approach continues to spark debate over its long-term implications for market stability and ethical governance.

As the administration moves forward with its pro-crypto agenda, all eyes remain on how these policies will shape the future of cryptocurrency regulation in the United States.