The U.S. Department of Justice (DOJ) is revising its strategy regarding crypto. The primary focus will now be on prosecuting crimes such as fraud and terrorist financing, rather than holding developers accountable for the misuse of their code.
This was announced by Deputy Attorney General Todd Blanche. According to him, the new approach aims to reduce pressure on the industry and create conditions for the development of blockchain projects.
Industry Support and a Signal From the Trump Administration
The policy shift aligns with the broader course of Donald Trump’s administration to ease restrictions in the cryptocurrency sector. The president has expressed support for digital assets and the creation of conditions for the growth of innovative businesses in the U.S.
Previously, the Securities and Exchange Commission (SEC) dropped civil lawsuits against several major market players. The agency first withdrew its appeal against Ripple, ending a long-standing legal battle, and later closed cases involving Crypto.com, Kraken, Consensys, Cumberland DRW, and other companies.
Focus on Violations, Not Technology
Regulators now plan to focus on combating the illegal use of cryptocurrencies — particularly in money laundering and terrorist financing. At the same time, developers of protocols, smart contracts, and blockchain infrastructure will not be held responsible for the actions of third parties if they are not directly involved in the violations.
However, increased attention will remain on privacy coins. These assets continue to face allegations of being used in criminal schemes.
One such coin is Monero (XMR). According to CoinMarketCap, at the time of writing, the token is trading at $195 with a market capitalization of $3.59 billion. Over the past 24 hours, the price has dropped 5,92%, and trading volume stands at $73.96 million — a 19,07% decline.
Analysts believe the DOJ’s updated approach could bring more balance to the market. Growth in DeFi activity is expected, particularly amid the strengthening of legal frameworks and increased transparency.
Millions in Crypto Tax Evasion
Previously, the DOJ recorded its first conviction for tax evasion related to cryptocurrency income. Austin resident Frank Richard Ahlgren III purchased 1,366 BTC in 2015 at a price of less than $500 per coin. In 2017, he sold 640 BTC for $3.7 million, invested the profit in real estate, but understated the cost basis of the bitcoins in his tax return, concealing the actual income.
It was later discovered that he also failed to report over $650,000 from BTC sales in 2018–2019. To cover his tracks, Ahlgren used crypto mixers, cash transactions, and a chain of anonymous wallets. Notably, back in 2014, he published blog posts offering advice on increasing anonymity when using mixers.
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