U.S. Senators Question DOJ’s Disbanding of Crypto Enforcement Team

Six U.S. Senators, including Mazie Hirono and Elizabeth Warren, questioned Deputy Attorney General Todd Blanche’s 2025 decision to dissolve the DOJ’s National Cryptocurrency Enforcement Team.

The decision may conflict with Blanche’s cryptocurrency holdings and risks facilitating increased illicit digital asset activities, according to the senators.

Senators Probe DOJ’s Crypto Team Disbandment Impact

The letter addresses the DOJ’s decision to dissolve its National Cryptocurrency Enforcement Team (NCET) in April 2025. This decision was made by Deputy Attorney General Todd Blanche, who previously defended Donald Trump. Senators Hirono, Warren, and Durbin highlight a conflict due to Blanche’s substantial cryptocurrency holdings, which they allege may violate federal law.

The disbandment of NCET might have significantly impeded efforts to combat illegal activities within the digital asset space. Cited data shows a 162% surge in criminal activities linked to cryptocurrencies, with an increase in assets received by sanctioned entities. This underscores the senators’ concerns over security and regulation.

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“We question the decision to disband the DOJ’s National Cryptocurrency Enforcement Team and its implications for the ongoing battle against crypto-related crimes.” – Mazie K. Hirono, U.S. Senator

Market Trends and Legal Concerns in Crypto Boom

Did you know? The disbandment of specialized enforcement teams can often lead to a significant rise in unregulated activities in their respective sectors.

Bitcoin (BTC), valued at $87,914.57, exhibits a market cap of $1.76 trillion. As of January 29, 2026, its trading volume reached $43.20 billion, indicative of a 13.39% change. Despite a 19.57% loss over 90 days, BTC maintains a 58.99% market dominance. Data reflects the recent trend of market fluctuations, sourced from CoinMarketCap.

Coincu research indicates a possible increase in financial crimes and regulatory challenges. The abrogation aligns with prior Trump-era delegations, sparking debate among lawmakers and stakeholders. Further research suggests ongoing market hiring in defense strategies for cryptocurrency exchanges, as discussed in the crypto market challenges.