by J. Christopher Giancarlo, Elizabeth P. Gray, Justin L. Browder, Conrad G. Bahlke, and Richard M. Borden
On October 1, 2020, the Cyber-Digital Task Force (“Task Force”) of the United States Department of Justice (“DOJ”) issued a Cryptocurrency Enforcement Framework (“Framework”).[1] The Framework summarizes threats posed by illicit uses of cryptocurrency, the applicable laws that the DOJ and other federal regulatory agencies apply in seeking to identify and mitigate such threats, and the ongoing challenges faced by the DOJ in prosecuting criminal conduct in the digital asset ecosystem. The Framework details an extensive array of federal, state, and international laws and regulations that apply to cryptocurrencies and reflect the emerging approach to cryptocurrency regulation and enforcement by federal and state governments. While the extensive patchwork of regulations suggests a need for harmonization, the Framework refrains from calling for any new or amended legislation, regulation, or other rules. It also does not discuss the government’s use of sophisticated technology to track cryptocurrency transactions and develop its cryptocurrency-related cases. Importantly, the Framework does not advocate for legal or regulatory suppression of cryptocurrency, as some initial commentators suggested.