Today, Senators Elizabeth Warren, Mazie Hirono, and Dick Durbin led a group of six U.S. Senators in urging Deputy Attorney General Todd Blanche to reverse the Department of Justice's recent decisions concerning cryptocurrency investigations. The Senators are calling for policy changes, particularly in response to a memo which stated that DOJ will cease its cryptocurrency investigations and disband the National Cryptocurrency Enforcement Team (NCET). The NCET was established to address criminal misuse of cryptocurrencies and digital assets.
The Senators criticized the plan, stating, "These are grave mistakes that will support sanctions evasion, drug trafficking, scams, and child sexual exploitation." Concerns were also raised about the DOJ's new stance on digital assets, noting that mixers, which obscure the origins of cryptocurrency transactions, are often used by criminals.
"It makes no sense for DOJ to announce a hands-off approach to tools that are being used to support such terrible crimes," the Senators wrote. They warned that the decision would enable bad actors, such as drug traffickers and terrorists, to exploit these vulnerabilities.
NCET, since its inception in 2021, has collaborated with U.S. Attorneys' offices to handle cases involving substantial amounts of digital assets. The recent disbandment is intended to allow DOJ to prioritize other issues, such as immigration and procurement frauds, according to the memo.
The Senators expressed concerns about the potential influence of President Trump's interest in cryptocurrency on these decisions. They concluded by urging Deputy Attorney General Blanche to reconsider the actions.
In addition to Senators Warren, Hirono, and Durbin, the letter was endorsed by Senators Sheldon Whitehouse, Chris Coons, and Richard Blumenthal.