Policy
White House Authorizes Private Sector Cyber Operations Against Crypto Crime
On August 12, 2026, President Donald Trump signed a National Security Presidential Memorandum (NSPM) allowing vetted private companies to engage in government-directed offensive cyber operations targeting transnational criminal organizations that exploit digital assets. This initiative aims to combat fraud, ransomware, and money laundering activities linked to these organizations.
The NSPM builds on Executive Order 14390, signed earlier in March 2026, which established a dedicated operational cell within the National Coordination Center (NCC) to enhance cooperation between federal agencies and the private sector in detecting and responding to cybercrime. Under the new framework, participating firms will receive legal protections for their operations, but they must operate under stringent government oversight, requiring dual-agency approvals for all actions.
Congress is also advancing related legislation, with the introduction of S.5000, the Cyber Letters of Marque and Reprisal Act, which would provide the President with explicit authority to authorize private entities to conduct cyber operations against foreign threats. This new framework represents a significant shift in U.S. cybersecurity policy, moving from a defensive posture to a more proactive approach against cyber-enabled transnational criminal organizations (CE-TCOs).
The NSPM is designed to leverage private sector expertise to recover stolen funds and dismantle the infrastructure supporting crypto-enabled criminal networks, such as mixers and ransomware-as-a-service platforms. Importantly, the framework is technology-neutral, focusing on criminal behavior rather than specific cryptocurrencies or tokens.
FAQ
What is the purpose of the National Security Presidential Memorandum (NSPM) signed by President Trump?
The NSPM authorizes vetted private companies to engage in government-directed offensive cyber operations targeting transnational criminal organizations that exploit digital assets, aiming to combat fraud, ransomware, and money laundering activities.
How does the NSPM relate to previous executive orders?
The NSPM builds on Executive Order 14390, which established a dedicated operational cell within the National Coordination Center (NCC) to enhance cooperation between federal agencies and the private sector in detecting and responding to cybercrime.
What legal protections do participating firms receive under the NSPM?
Participating firms will receive legal protections for their operations, but they must operate under stringent government oversight, requiring dual-agency approvals for all actions.
What is the Cyber Letters of Marque and Reprisal Act (S.5000)?
The Cyber Letters of Marque and Reprisal Act is legislation being advanced by Congress that would provide the President with explicit authority to authorize private entities to conduct cyber operations against foreign threats.
What is the main focus of the new cybersecurity framework established by the NSPM?
The framework is technology-neutral and focuses on criminal behavior rather than specific cryptocurrencies or tokens, aiming to leverage private sector expertise to recover stolen funds and dismantle the infrastructure of crypto-enabled criminal networks.