The U.S. DOJ disbanded the National Cryptocurrency Enforcement Team to focus on narcotics, following an executive order. Concerns arise over potential conflicts of interest involving Trump and the crypto industry.

The United States Department of Justice has announced the immediate disbandment of the National Cryptocurrency Enforcement Team in order to shift its focus to combating narcotics use. This decision was outlined in a four-page memo from Todd Blanche, the United States Deputy Attorney General, as reported by a Fortune journalist referencing a Cointelegraph report dated April 8.

In the memo, Mr. Blanche emphasized that the Department of Justice is not intended to function as a regulator of digital assets. He pointed out that the previous Administration had misused the Justice Department to pursue what he described as a "reckless strategy of regulation by prosecution."

The dissolution of the National Cryptocurrency Enforcement Team is a step toward aligning with the executive order issued by President Donald Trump in late January, which called for a reconfiguration of U.S. cryptocurrency policy.

Mr. Blanche, who holds the position of the second-highest-ranking official in the DOJ, previously served as President Trump’s defense attorney in several high-profile legal cases, including the New York hush money case, federal matters involving classified documents, and disputes related to the 2020 election.

However, this move has drawn criticism, with concerns arising over potential conflicts of interest involving Mr. Trump and his family. There are claims that they are connected to World Liberty Financial (WLFI), a decentralized finance (DeFi) protocol, and the Official Trump (TRUMP) memecoin. Furthermore, Trump Media is reportedly in the process of launching cryptocurrency exchange-traded funds (ETFs) in partnership with Crypto.com, which has raised additional questions regarding possible ties to the crypto industry.