According to Fortune, the DOJ will no longer pursue criminal charges against crypto exchanges. Also, to mixing services, or holders of cold wallets. This decision applies in most cases.
This marks a major departure from previous enforcement practices. The shift signals a change in the DOJ’s approach to crypto regulation.
DOJ Shifts Focus to Bad Actors, Not the Platforms They Use
The disbanding of NCET is effective immediately, and it comes with a new set of guidelines for how the DOJ will handle crypto-related offenses. If criminal groups use crypto services, the DOJ will target the criminals, not the platforms. It will no longer target the platforms facilitating these transactions. This marks a significant change in how the DOJ has historically targeted services like crypto mixers.
Source: X
Crypto mixing services, such as Tornado Cash, have long been in the government’s crosshairs due to their role in anonymizing transactions. These services have often been linked to illicit activities like money laundering, with criminal organizations using them to hide their tracks. However, in this new approach, the DOJ will refrain from prosecuting these services unless they are directly involved in crimes like scams, hacks, or embezzlement.
Crypto Community Split as DOJ Eases Up
The DOJ’s memo has sparked waves of debate within the crypto community. On one hand, it’s seen as a victory for privacy advocates. They have long pushed back against government overreach into the space. On the other hand, some worry that this could open the floodgates for illegal activities. This allow bad actors to continue using crypto services with little oversight.
Source: X
In a broader sense, this shift reflects a changing attitude toward crypto regulation in the U.S. The government seems to be stepping back from its aggressive stance, opting instead to focus on more pressing concerns like scams, rug pulls, and hacks. As the industry matures, the DOJ appears to be acknowledging that not all crypto activity is illicit, and it’s willing to let the space evolve with less interference.
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