The United States is undergoing a significant policy shift under President Donald Trump, with major developments in both cryptocurrency regulation and international trade. The Department of Justice has officially shut down its National Cryptocurrency Enforcement Team (NCET), a unit previously tasked with targeting crypto-related crime.
At the same time, the administration has introduced new import tariffs, including a 34% levy on Chinese goods, signaling a return to aggressive trade posturing. While critics warn of rising tensions and regulatory gaps, some analysts believe these measures are part of a broader strategy to reshape US positioning in both digital finance and global commerce.
DOJ Disbands National Cryptocurrency Enforcement Team Amid Trump-Driven Policy Shift
The Department of Justice (DOJ) is reportedly disbanding its National Cryptocurrency Enforcement Team (NCET), according to a leaked internal memo seen by Fortune and cited in a report released April 8.
The four-page document, authored by Deputy Attorney General Todd Blanche, asserts that the Justice Department is “not a digital assets regulator,” criticizing the previous administration’s approach to crypto-related enforcement. The memo pointedly accuses the Biden administration of engaging in “regulation by prosecution,” a strategy Blanche described as reckless.
The NCET, launched in October 2021 under President Joe Biden, was tasked with investigating and prosecuting crimes involving cryptocurrency platforms and digital asset service providers. At the time, then-Deputy Attorney General Lisa Monaco framed the unit as a necessary step to “dismantle the financial ecosystem” supporting digital asset–related crime. Since becoming operational in February 2022, the NCET played a significant role in targeting crypto-related fraud, sanctions evasion, ransomware payments, and money laundering schemes.
The timing of the disbandment is no coincidence. The move comes just months after President Donald Trump signed an executive order in January reshaping US crypto policy, part of a broader effort to position the United States as a global leader in digital asset innovation. The dismantling of NCET is reportedly effective immediately.
Trump’s Crypto Policy: From the Campaign Trail to the White House
Trump’s pro-crypto stance has been a defining aspect of his return to the presidency. Throughout his 2024 campaign and beyond, he emphasized a future in which the US would embrace blockchain innovation rather than stifle it.
His proposals have included creating a US strategic Bitcoin reserve, supporting the use of decentralized finance (DeFi), and establishing the country as a global hub for digital assets.
Moreover, Trump appointed a pro-crypto chairman to the Securities and Exchange Commission (SEC), signaling a fundamental shift in how regulatory agencies are expected to approach the sector.
The SEC under the new leadership has already begun reviewing several crypto-related ETF applications more favorably and is working on streamlining compliance for digital asset firms.
However, this new direction has not come without controversy.
Despite—or perhaps because of—Trump’s apparent support for the industry, critics have raised red flags about potential conflicts of interest. Trump and members of his inner circle have deep personal and financial ties to several high-profile crypto ventures.
These include the World Liberty Financial (WLFI) DeFi platform, the Official Trump (TRUMP) meme coin, and a series of crypto-related ETFs being launched by Trump Media in partnership with Crypto.com.
The WLFI platform recently made headlines due to its USD1 stablecoin, which some lawmakers fear could undermine bipartisan efforts in Congress to establish clear, centralized regulations for stablecoins.
In late March, five Senate Democrats issued a letter urging top regulators to assess the ramifications of a politically-affiliated stablecoin. That concern was echoed earlier this month when Representative Maxine Waters suggested that Trump’s ultimate goal might be to challenge or even replace the US dollar with USD1.
In parallel, the TRUMP meme coin became embroiled in allegations of insider trading—accusations that were later dismissed by some blockchain analysts as the result of MEV (maximal extractable value) bot activity rather than direct manipulation. Nevertheless, the incident added fuel to the fire of concern about the entanglement between federal policymaking and personal digital asset investments.
What’s Next for Crypto Enforcement in the US?
With the NCET dissolved, questions remain over how the federal government will handle criminal cases involving cryptocurrency. While the DOJ is stepping back from centralized enforcement, it’s unclear whether its individual field offices will continue pursuing crypto-related crimes through traditional financial crime units, or whether a new structure will emerge under Trump’s revamped digital asset policy framework.
Legal experts have expressed concern that disbanding the NCET without a clear replacement could create a gap in enforcement and oversight—potentially emboldening malicious actors during a time of rapid digital asset adoption.
Global Trade Tensions Could Ease as Trump Eyes Deal With China Amid Tariff Fallout
In related news, global markets are on edge following US President Trump’s announcement of sweeping new import tariffs earlier this month, raising fears of a renewed trade war between the world’s two largest economies.
However, insiders and analysts suggest the aggressive moves may ultimately be a strategic gambit aimed at securing a landmark trade agreement with China.
On April 2, Trump shocked global markets by announcing a 10% baseline tariff on all imported goods starting April 5. Most notably, Chinese imports face a steep 34% levy beginning April 9, reigniting concerns over economic decoupling and retaliatory escalation. Equity markets faltered following the news, while crypto markets—often considered risk-sensitive—saw increased volatility and uncertainty.
Despite the seemingly aggressive stance, Raoul Pal, CEO and founder of Global Macro Investor, believes the Trump administration’s tough rhetoric may be more calculated than confrontational.
In an April 8 post on X, Pal suggested the current negotiations are designed to extract a favorable deal from Beijing rather than to wage a prolonged trade war.
“In the end, almost all the other tariff negotiations and rhetoric are all about getting China to agree a deal,” Pal wrote. “That is the big prize, and both China and the US understand it and need it.”
Pal also emphasized the strategic nature of the US efforts to prevent tariff circumvention, noting that Washington is targeting rerouting tactics via nations like Mexico and Vietnam, which have previously been used as alternative trade channels by Chinese exporters seeking to dodge US levies.
China Fires Back With Matching Tariffs
In a direct tit-for-tat response, China imposed its own 34% tariff on all American imports, effective April 10, according to a report by state-run media outlet Xinhua. China’s Foreign Ministry characterized the US tariffs as “economic bullying” and issued a stern warning that it would “fight till the end” if necessary.
The retaliatory measures from Beijing significantly dim hopes for a short-term resolution. China, which surpassed the United States as the world’s largest trading nation in 2012, is determined to maintain its status and global influence amid rising protectionist threats.
The latest moves mark a critical juncture for global trade. While both sides claim to be acting in national interest, observers warn that continued escalation could trigger ripple effects across supply chains, inflation metrics, and global financial markets.
The crypto market, already experiencing heightened sensitivity due to macroeconomic uncertainty and shifting Federal Reserve policy, is closely watching the outcome of the US–China trade talks. Analysts suggest a deal—or even the perception of progress—could serve as a powerful bullish signal for digital assets.
Nansen analysts estimate that crypto markets now have a 70% chance of bottoming out by June 2025, depending on the resolution of trade tensions and other macroeconomic drivers.
Strategic Moves or Political Grandstanding?
While Trump’s bold tariff plan has been met with backlash from economists and global leaders alike, some insiders view it as a strategic ploy meant to bolster US leverage. According to Raoul Pal, Trump’s primary aim is to force China into a deal that benefits the US economy and shores up domestic manufacturing—two of the president’s key policy priorities.
Still, not everyone is convinced that a resolution is within reach. Skeptics argue that even if the tariff measures are intended as a negotiating tool, the damage to international relations and market confidence may be difficult to reverse.
With the April 9 and 10 deadlines for the respective tariff implementations now in place, the world is watching to see whether cooler heads will prevail. The markets, particularly the crypto sector, are likely to remain volatile until a clearer picture of US–China trade policy emerges.
Some investors hold out hope that behind closed doors, the two nations are working toward a deal that would not only ease economic pressure but also establish a new baseline for cooperation in a digitally driven global economy.
Until then, the crypto community and broader financial markets will continue to navigate a precarious environment shaped by both political maneuvering and economic necessity.
