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Avoiding Costly Battles Over Securities Classifications

In an effort to sidestep murky regulatory waters, prosecutors have been advised not to charge violations that would force the DOJ to litigate whether a crypto asset is a security or a commodity, unless absolutely necessary.

Still, the memo notes prosecutors may treat Bitcoin and Ether as commodities, and can still pursue securities fraud charges when digital assets clearly function as equity or stock in crypto firms.

This signals a DOJ keen to streamline cases and maximize impact without getting bogged down in jurisdictional brawls with agencies like the SEC or CFTC.

DOJ Silent on Impact to Ongoing Suits

The department declined to elaborate on how this new policy impacts active litigation, including its ongoing high-profile case against Roman Storm, accused operator of crypto mixer Tornado Cash — a platform at the heart of the debate over privacy vs. crime in the crypto space.

A Pivot With Industry-Wide Implications

This is more than a memo — it’s a paradigm shift. By shutting down the NCET and stepping back from platform prosecutions, the DOJ is redefining its role in a rapidly evolving digital landscape.

The department will also continue contributing to federal working groups on digital asset policy, offering recommendations for regulatory clarity and consumer protection under the umbrella of the Trump administration’s pro-innovation directive.

In a digital wild west that’s seen more than its fair share of sheriffs, bounty hunters, and snake oil salesmen, the DOJ has just redrawn the map — and everyone from developers to investors is watching where the trail leads next.