Many advocates are applauding the Department of Justice’s new crypto enforcement memo as a sensible forfeiture reform. To them, it represents a firm, but welcomed, move away from the prior “regulation by prosecution” approach. I see something far more sinister: a potential abdication of responsibility, a dangerous gamble with our financial security, and a subtle undermining of the very principles of law and order. Many more—are we really celebrating a piece of legislation that will do nothing but help the bad guys succeed?
Is DOJ Surrendering to Chaos?
The memo suggests the DOJ will step back from cases where it needs to determine if a digital asset is a security or commodity. It further dissolved its National Cryptocurrency Enforcement Team (NCET). On the surface, this seems like a reasonable step to prevent overreach. Let's be honest: the lines in crypto are deliberately blurred. This lack of clarity is exactly how the nefarious among us exploit their influence. By refusing to bring these cases, the DOJ is in effect letting them off the hook.
That’s the same as a police officer saying, “I’m not going to investigate robberies unless the robber leaves me a signed confession. Just because the crime is complex, is not an excuse to not prosecute a crime. That’s not an excuse for neglect. It should instead be a call to invest in the know-how to identify and fight it.
It’s not all about saving large companies or Wall Street banks. After all, this is as much about protecting everyday Americans who are being pulled into the crypto market by the day. Individuals are investing their hard-earned savings into these speculative assets, sometimes completely unaware of the risks associated with them. And now, the DOJ appears to be waving them away with a “luck, you’re on your own” shrug.
From Bitcoin to Border Security
Nonetheless, the DOJ maintains that it will continue to vigorously pursue fraud and other forms of criminal misconduct facilitated by crypto. That’s nice to hear, but that’s a very narrow interpretation of the larger story. Crypto is more than fraud, it’s about all of these things. It’s a tool that now facilitates sanctions evasion, drug trafficking, and most disturbingly, child sexual exploitation.
Think about it: the ability to move money anonymously and across borders is a dream come true for criminals. It’s the digital equivalent of a Swiss bank account cranked up to eleven. And now, on top of all this, with promises of less enforcement, we’re practically rolling out the welcome mat.
Consider the situation at our southern border. The flow of illicit funds – drug trafficking, arms dealing, and overall corruption – drives much of the disorder, criminal networks, and human suffering we currently witness there. Crypto facilitates that flow. A weakened DOJ stance on crypto enforcement is, in practice, a weakening of our national security. It’s an unusual link, indeed, but an important one.
Trump, Crypto, and Complicity
The timing of this memo is remarkably bad. It comes hot on the heels of Trump's pardon of BitMEX founders, and amidst increasing chatter about his administration's embrace of crypto. Indeed, Trump just established a new digital asset advisory council, chaired by none other than Bo Hines himself. In fact, Binance executives recently held private meetings with senior officials at the U.S. Treasury Department. They wanted to figure out how to bend federal regulations in the U.S.
Are we seeing a pattern here? Does this DOJ memo signal a new political agenda? Or are they willing to do so while putting poor regulatory outcomes aside in the name of deregulating crypto?
The memo's lack of clarity and its unclear connection to Trump's executive order on strategic bitcoin reserves only add to the suspicion. It seems sneaky, like maybe something is being covered up, that there’s a larger more sinister game afoot behind the curtain.
This isn't about being anti-crypto. It's about being pro-law and order. It’s not just about accountability, it’s about protecting the most vulnerable so that these tragedies don’t happen again.
This isn't a time for complacency. Now is the time to catapult these good ideas into action, and hold our new elected officials accountable. Contact your representatives in Congress. Call for more transparency and enforcement of the laws that already apply in the crypto sector. Tell them you won’t stand for a system that allows wrongdoers to thrive. It should not be done on the backs of everyday, honest, hard-working Americans.
We do want robust borders and fiscal accountability. We need a Department of Justice that’s all in on defending the rule of law, not one that’s backing away from defending it.
Let’s not let this short-sighted memo become an instruction manual for a world of financial disorder. Let's demand better.
Let's not allow this memo to become a blueprint for a future where financial chaos reigns supreme. Let's demand better.
