"Litigation or enforcement actions that have the effect of superimposing regulatory frameworks on digital assets" will no longer be pursued, the memo states, deferring that responsibility to financial regulators operating outside the criminal justice system.
The Justice Department did not immediately respond to CNBC's request for comment.
Since taking office, the Trump administration has rapidly scaled back oversight, with the Securities and Exchange Commission pausing or abandoning several high-profile enforcement actions, and revoking a banking rule that blocked Wall Street banks from adopting crypto.