Did You Get the Memo? DOJ Ends “Regulation by Prosecution”

by

|

Published

TLDR

  • A memo released by the DOJ last week officially ended its regulation by a prosecution approach to the crypto industry.
  • The agency is falling in line behind President Trump’s executive order.
  • Their new focus? Going back to tacking crime and bad guys.

The U.S. Department of Justice (DOJ) issued a memo last week that could bring a major shift in how crypto is treated legally. To put it simply? The days of trying to regulate crypto through courtroom drama may be over.

Here’s what you need to know about the DOJ’s move, what it means for crypto companies, and how it might impact you as someone exploring or investing in the space. This is a huge win for the industry, innovation, and users. Let’s get after it/

From Fear to Fairness: What’s in the Memo? 

The DOJ’s new approach, rooted in Executive Order 14178, sets the tone for how the Justice Department plans to handle digital assets moving forward. 

Instead of pursuing crypto firms for technical missteps and regulatory gray areas, the department is focusing its energy on real crime, such as fraud, theft, and money laundering tied to digital currencies.

Here are the headlines from the memo:

  • No more “regulation by prosecution”: The DOJ will no longer target exchanges, mixers, or wallet providers for violations their end users might commit (unless there’s intent involved).
  • Shifting focus to criminal activity: Investigations and prosecutions will prioritize crimes like embezzlement, rug pulls, and scams targeting investors, as well as using crypto to fund illegal activities like terrorism or narcotics trade.
  • Prosecutorial discretion: Cases concerning licensing or registration rules that arise from confusing or poorly communicated regulations will no longer be immediately treated as criminal cases.

TLDR? The DOJ wants to protect investors and crack down on bad actors without stifling legitimate businesses. 

That’s all we’ve asked for for years. Thank you.

What’s Changing For Crypto Companies 

Crypto firms (and users) just breathed a collective sigh of relief. Previously, many businesses felt like they were walking blindfolded through a legal minefield, thanks to Operation Chokepoint.. 

Now, there’s clarity. Sweet, sweet clarity.

The DOJ recognizes it’s not a digital assets regulator, and it’s handing much of that responsibility back to agencies like the SEC and CFTC. What does this mean in practice? 

1. Fewer Legal Battles For Companies 

Under the previous administration, the DOJ had a reputation for taking crypto companies to court for regulatory violations. This aggressive tactic, often dubbed “regulation through prosecution,” left the industry confused and apprehensive. 

2. Investor Protection at the Forefront 

The memo places a spotlight on safeguarding those exploring crypto investment. Prioritizing cases involving scams, fraud, and fund misappropriation shows the DOJ is now prioritizing bad actors. And they will be held accountable without needlessly penalizing businesses. 

At the end of the day, that’s the DOJ’s job. Not to tell us how to bank. Not to stifle innovative businesses. But to protect American citizens from bad guys.

3. Disbanding Enforcement Teams 

If you’ve followed crypto law enforcement, you may have heard of the National Cryptocurrency Enforcement Team (NCET). It’s no more. The team is being dissolved as resources are shifted toward other pressing priorities.

This is the government we’re talking about. Every action they take, no matter how insignificant, costs tax dollars. And who pays tax dollars? We do. Every time the DOJ, SEC, or any other regulatory body “unleashed the hounds” on a crypto company, it cost all of us money. Think about it. 

What This Means For Crypto Users 

If you’re new to crypto, you might be wondering, “Why should I care?” 

Well, here’s what this shift boils down to for you as an investor or curious explorer of blockchain tech:

  • Greater trust in the system – Cracking down on scams and fraudulent schemes makes the space safer for individuals like you to experiment, invest, and explore without the constant fear of losing your assets to bad actors. 
  • More innovation, fewer barriers – For crypto to grow, companies need room to innovate. This policy shift ensures that legitimate companies can bring products to market without the overhead of constant fear of litigation. More innovation means better tools, platforms, and opportunities for everyone.
  • Clarity moving forward – With clearer regulations in the works, the DOJ can step back from its role as an unofficial crypto regulator. The end result will be a more transparent and reliable ecosystem. 

The Bigger Picture For All of Crypto 

The DOJ’s return to focusing energy and resources on criminal activities that hurt society at large, rather than overburdening an emerging industry with unclear legal expectations, is yet another step in the future we want to see. 

It aligns with the current administration’s goal to defend blockchain innovation for the future. We’re moving from a hostile environment to a cooperative one.

Unfortunately, we found this story buried under what it means for Do Kwon and his upcoming trial. We’re not sure if major crypto news outlets realized the implications of this action or if they didn’t think it was newsworthy enough for their audience. 

Don’t worry. We caught it and we’ve got you covered. We don’t want to downplay his (alleged) atrocities. But what’s happening right now and its impact on the future that’s coming, at least to us, has more value as far as news.

Where We Go From Here 

Does this mean it’s all smooth sailing for crypto companies and investors? Not quite. 

We’ve said this quite often. And now, we’re saying it again. While this is a step forward, there’s still work to be done to create a coherent regulatory framework for digital assets in the US. From the STABLE and GENIUS Acts on the national level to bills making their way through various states, regulation is a work in progress.

The DOJ’s memo also makes it abundantly clear that the focus will now shift to prosecuting cases of fraud, money laundering, and the funding of illegal activity. For companies with clean hands, this loosening of the DOJ’s grip could mean more of a focus on business growth and less on litigation.

Leaderboard

Only Top 10 users qualify for monthly $100 drawing.

RankPoints
Trophy1
Jillianne R.
Diamonds119
Trophy2
Phillip W.
Diamonds119
Trophy3
Baffa O.
Diamonds119
Trophy4
James C.
Diamonds119
Trophy5
Male T.
Diamonds119
Trophy6
Ron B.
Diamonds119
Trophy7
Moses O.
Diamonds119
Trophy8
Saifu A.
Diamonds119
Trophy9
Lidya I.
Diamonds119
Trophy10
Kofi K.
Diamonds119
Trophy11
Mustafe O.
Diamonds119
Trophy12
Musa S.
Diamonds118
Trophy13
Dany T.
Diamonds118
Trophy14
Lalisa F.
Diamonds118
Trophy15
Ernest L.
Diamonds118
Trophy16
Eric A.
Diamonds118
Trophy17
John P.
Diamonds118
Trophy18
David D.
Diamonds118
Trophy19
Barry S.
Diamonds118
Trophy20
Dan B.
Diamonds118
Trophy21
James A.
Diamonds118
Trophy22
Menelik G.
Diamonds117
Trophy23
Kyakonye S.
Diamonds117
Trophy24
Asfaw I.
Diamonds117
Trophy25
Khaleeq A.
Diamonds117
Trophy26
Wayne C.
Diamonds117
Trophy27
Mohamed N.
Diamonds117
Trophy28
Hamza K.
Diamonds117
Trophy29
Genuine C.
Diamonds117
Trophy30
ALIYU Y.
Diamonds117
Trophy31
Soly N.
Diamonds117
Trophy32
David B.
Diamonds116
Trophy33
Nathan H.
Diamonds116
Trophy34
Nour E.
Diamonds116
Trophy35
Bello U.
Diamonds116
Trophy36
Nazeeh K.
Diamonds116
Trophy37
Anselme D.
Diamonds116
Trophy38
Muhammmad H.
Diamonds116
Trophy39
Sherry D.
Diamonds116
Trophy40
Abubeker A.
Diamonds116
Trophy41
Kenneth J.
Diamonds115
Trophy42
William M.
Diamonds105
Trophy43
Okello A.
Diamonds105
Trophy44
Obey T.
Diamonds101
Trophy45
Michael R.
Diamonds101
Trophy46
Lucy A.
Diamonds99
Trophy47
David C.
Diamonds98
Trophy48
Hilik T.
Diamonds98
Trophy49
Gabrielle G.
Diamonds97
Trophy50
Kimberley S.
Diamonds95
Trophy51
Mich O.
Diamonds94
Trophy52
Oyetunji S.
Diamonds93
Trophy53
Latrice S.
Diamonds92
Trophy54
THEOBALD S.
Diamonds92
Trophy55
hanad A.
Diamonds84
Trophy56
Pavan C.
Diamonds84
Trophy57
Michael M.
Diamonds82
Trophy58
Rosalio S.
Diamonds82
Trophy59
Tha H.
Diamonds82
Trophy60
Hossana E.
Diamonds82
Trophy61
John H.
Diamonds82
Trophy62
PaulShultis S.
Diamonds64
Trophy63
Gashaw N.
Diamonds63
Trophy64
Jeremiah A.
Diamonds63
Trophy65
Alam Z.
Diamonds62
Trophy66
FRANK I.
Diamonds61
Trophy67
Melkamu A.
Diamonds61
Trophy68
Akeem A.
Diamonds58
Trophy69
OSAMEDE O.
Diamonds56
Trophy70
Isaac O.
Diamonds56
Trophy71
Olorunwa M.
Diamonds56
Trophy72
Yashin S.
Diamonds55
Trophy73
Erbs M.
Diamonds55
Trophy74
John S.
Diamonds55
Trophy75
Shiferaw T.
Diamonds54
Trophy76
Richard P.
Diamonds54
Trophy77
Mbongiseni S.
Diamonds54
Trophy78
Christian C.
Diamonds54
Trophy79
james_bolinda
Diamonds54
Trophy80
Ronald H.
Diamonds53
Trophy81
Sean S.
Diamonds43
Trophy82
Kenneth B.
Diamonds42
Trophy83
Aimee B.
Diamonds40
Trophy84
Muhammad I.
Diamonds37
Trophy85
Expert E.
Diamonds36
Trophy86
Raz E.
Diamonds36
Trophy87
Jamil B.
Diamonds36
Trophy88
Juma G.
Diamonds35
Trophy89
Shom S.
Diamonds35
Trophy90
Somadina O.
Diamonds35
Trophy91
Carlos P.
Diamonds35
Trophy92
Kenneth J.
Diamonds35
Trophy93
Ade N.
Diamonds35
Trophy94
jtcraw
Diamonds35
Trophy95
Carlos M.
Diamonds33
Trophy96
Bekele W.
Diamonds32
Trophy97
Glen M.
Diamonds32
Trophy98
DAVISON P.
Diamonds31
Trophy99
Martins M.
Diamonds31
Trophy100
Sayid A.
Diamonds31
Silver Trophy
Diamonds0

Countdown to next draw

days

hours

minutes

seconds