The Trump administration has announced sweeping efforts to scale back cryptocurrency regulation, citing the need to boost American blockchain innovation. As part of this initiative, the Department of Justice formally disbanded its specialized crypto enforcement team last week.
Deregulation in Action
- NCET Dissolved: The National Cryptocurrency Enforcement Team (NCET), created to tackle cybercrime and money laundering, has been decommissioned.
- Simplified Compliance: The administration aims to reduce compliance burdens on exchanges and DeFi platforms.
- New Guidelines Pending: Treasury and SEC are expected to publish simplified reporting standards in the coming months.
Family Ties and Controversy
While many in the industry welcomed the lighter regulatory approach, critics are raising ethical questions about the Trump family’s growing crypto footprint:
- USD1 Launch: A Trump-backed crypto startup, World Liberty Financial, launched its own stablecoin called USD1.
- Eric Trump’s Role: Eric Trump reportedly sits on the company’s board, raising concerns about political influence and private gain.
Market and Political Reaction
- Bitcoin Stability: BTC remained relatively steady, trading near $84,500.
- Democratic Pushback: Lawmakers warn that removing safeguards could enable fraud and money laundering.
- Public Perception: Mixed, with libertarians praising deregulation and watchdogs urging stronger oversight.
Final Thoughts
Deregulation could accelerate U.S. crypto leadership—or reignite fears of a “wild west” market.
As Trump loosens the reins, the line between innovation and impropriety is growing ever thinner.
