A New Chapter in Crypto Enforcement:
Blanche Memo and Compliance Strategy
On April 7, 2025, Deputy Attorney General Todd Blanche issued a memorandum — now widely known as the “Blanche Memo” — that marked a strategic shift in how the U.S. DOJ approaches digital asset enforcement. In a move that influences legal, financial, and crypto sectors, the DOJ announced the breaking up of its National Cryptocurrency Enforcement Team (NCET), originally launched in 2022. However, this does not signify a pullback in crypto-related prosecutions. Instead, the DOJ is recalibrating its focus toward crimes where digital assets act as enablers rather than as the core subject of scrutiny.
While the NCET played a key role in spotlighting and prosecuting high-profile crypto crimes, its dissolution reflects a maturation in the DOJ’s enforcement philosophy. The department will now emphasize targeting the underlying criminal conduct—fraud, terrorism financing, drug and human trafficking, cybercrime, and organized crime—that increasingly utilizes digital assets as part of their schemes. By doing so, the DOJ aims to sharpen its resources toward conduct that presents tangible harm, instead of chasing ambiguous regulatory boundaries.
One of the most consequential implications of the Blanche Memo is the DOJ’s decision to deprioritize certain regulatory violations unless there is clear, willful misconduct:
Bank Secrecy Act (BSA) Violations:
Will not be prosecuted unless there is explicit, willful intent to evade anti-money laundering (AML) obligations.
Reflects a move away from penalizing technical or unintentional non-compliance.
Securities and Commodities Classification:
Cases that focus solely on whether a digital asset qualifies as a security (under the Securities Act) or a commodity (under the Commodity Exchange Act) will not be prioritized.
The DOJ will require evidence of bad faith or intentional misconduct for prosecution.
Unlicensed Money Transmission:
The DOJ will no longer prioritize violations involving operating without a money transmission license unless there is clear, willful disregard for the law.
Seen as an effort to bring regulatory clarity to a space often criticized for its legal uncertainty.
Overall, the Blanche Memo can be interpreted as a balancing act: reaffirming the DOJ’s commitment to combat criminal misuse of digital assets while acknowledging the need for proportional and predictable enforcement. Legal and compliance professionals working in the digital assets space should carefully reassess their risk frameworks.
Conclusion
However, it’s critical to understand that the Blanche Memo reflects a policy shift, not a regulatory change. Policies can evolve quickly, especially with changes in political leadership or shifts in the balance of power. What may be deprioritized today could become a top enforcement issue under a new administration. Moreover, legal violations typically carry a statute of limitations—often five years—meaning that actions taken now can be scrutinized retroactively if priorities shift. For companies operating in this space, this creates a period of legal uncertainty that underscores the importance of maintaining robust compliance programs regardless of current enforcement trends.
This article is based on the insights shared in “The DOJ’s NCET Disbanded: What the ‘Blanche Memo’ Means for Digital Assets,” published on April 25 by the Chainalysis Team.
https://www.chainalysis.com/blog/ncet-blanche-memo/?mkt_tok=NTAzLUZBUC0wNzQAAAGaA4ojMU-fxANSc0hw2-mmRZksBKO7Xml_F2MEI5Ol_z6TZ2wR-PrXWl0xe_VqLLU_rDTHFS8qcFRQMuTi_iFvj5wNZK1yO9NzxiSXVV9U0LuY
João Pedro Paro
Global Director of Governance, Risk & Compliance | PhD Candidate | Internationally Qualified Attorney
