Justice Dept. scales back crypto cases in line with Trump administration memo

Presidential Power, DOJ, and Separation of Powers

• Multiple comments argue the president effectively controls federal prosecution and can choose broad non‑enforcement (e.g., financial or crypto crimes), constrained in practice only by impeachment and political backlash.
• Others emphasize the Constitution’s “take Care” clause: the executive is supposed to faithfully enforce laws; courts have allowed prioritization but not blanket nullification—though norms around this are seen as breaking down.
• Several note the Supreme Court’s recent immunity decision: presidents can’t be criminally liable for “official acts”, with commenters disputing how broad that is and how it interacts with Trump’s behavior.
• There’s repeated pessimism about Congress’s willingness or capacity to check the executive, tied to polarization, party sorting, and weakened incentives for compromise.

What the DOJ Crypto Memo Actually Does

• A significant subthread argues the “no longer prosecute crypto fraud” framing is misleading. The memo:
  • Tells prosecutors to prioritize cases where individuals harm investors or use digital assets for other crimes (terrorism, drugs, cartels, hacking, trafficking).
  • De‑emphasizes “regulation by prosecution” against platforms for complex or technical regulatory violations.
• Critics respond that:
  • Many major frauds are perpetrated by platform operators, so shifting focus away from entities invites “fall guys” and slows meaningful accountability.
  • If other regulators (SEC, CFPB, etc.) are being weakened simultaneously, “let regulators handle it” becomes hollow.
• Supporters/steelmen say this aligns with a broader anti‑“lawfare” and deregulatory agenda and avoids applying old financial rules awkwardly to crypto.

KYC, Financial Surveillance, and Enforcement Tools

• Some expect this enforcement shift to be paired with relaxed KYC, especially for stablecoins; others argue KYC is crucial for detecting criminal use and won’t be reduced.
• Side discussion on cash reporting thresholds, civil forfeiture, and bank compliance:
  • Critics see current regimes as intrusive, inflation‑eroded, and prone to abuse by police.
  • Others defend them as necessary tools against money laundering and organized crime, while acknowledging overreach.

Crypto, Markets, and Consumer Protection

• Several commenters worry that if fraud can be laundered through crypto with reduced platform liability, all fraudsters will pivot there, undermining trust in both markets and crypto itself.
• One view: this is “good for Bitcoin” and part of treating crypto more like gambling—buyer beware.
• Counter‑view: allowing rampant fraud and collapses still harms real people and the broader economy, and absence of proactive oversight simply means more victims before any prosecutions occur.

Broader Politics, Media, and Trump

• Many see this memo as part of a pattern: pausing foreign bribery enforcement, Trump’s own meme coins, and a general move toward kleptocracy and impunity for allies and donors.
• Others try to “steelman” it as consistent with a laissez‑faire approach to a niche asset class.
• Long subthreads tie Trump’s support to media ecosystems, low civic knowledge, and disillusionment with both parties, versus critics who stress his long public reputation for fraud and his role in eroding norms and checks.