DOJ Reportedly Moving to Drop BitClub Case; Circle Secures U.S. National Trust Bank Approval

Crypto headlines on July 10 spanned federal enforcement, state-level financing and bank regulation. Bloomberg Law reported that the U.S. Department of Justice is preparing to end the BitClub Network prosecution of Matthew Goettsche. According to the report, DOJ leadership instructed prosecutors in New Jersey to seek dismissal with prejudice, which would bar the government from refiling the same charges. Goettsche's attorneys said they notified U.S. District Judge Claire Cecchi on July 8 that the parties had reached an agreement in principle and asked for additional time to finalize terms ahead of an October trial date. No final dismissal order had appeared in the public docket as of the reports. BitClub Network operators were originally accused of raising at least $722 million by selling what prosecutors described as fraudulent cryptocurrency-mining investments between April 2014 and December 2019. Goettsche faced allegations including wire-fraud conspiracy and unregistered-securities violations. DOJ records indicate multiple participants have already pleaded guilty in related matters, including Silviu Balaci (July 2020) on wire fraud and securities charges, as well as Joseph Abel and Jobadiah Weeks through separate proceedings. The reported shift follows Deputy Attorney General Todd Blanche's April 2025 memorandum on digital-asset enforcement. The guidance discouraged using criminal prosecutions primarily to resolve regulatory classification questions, while still prioritizing fraud that results in direct investor losses—a point that has drawn scrutiny given that the BitClub case centered on alleged fraud, not solely registration issues. In New Hampshire, the Executive Council rejected a proposed $100 million bond authorization on July 8. The five-member council voted 3–2 against the plan, despite support from Governor Kelly Ayotte. Under the proposal, bonds would have been issued through the New Hampshire Business Finance Authority, with a special-purpose vehicle purchasing a secured promissory note backed by Bitcoin; CleanSpark was to provide collateral. Moody's Ratings said state funds would not have been used to make payments, with Bitcoin liquidation intended to cover principal and interest. Supporters cast the proposal as aligned with the state's broader digital-asset direction after lawmakers approved a strategic Bitcoin reserve framework in 2025. Representative Keith Ammon criticized the council's decision and called for reconsideration. Moody's had assigned the proposed debt a provisional Ba2 rating, citing collateral volatility, transaction complexity and operating risks—a rating below investment grade. On the banking front, Circle said the Office of the Comptroller of the Currency granted final approval for Circle National Trust. The company announced the decision on July 10, following conditional approval in December 2025. Circle said the approved institution's legal name is First National Digital Currency Bank, National Association. The trust bank is set to begin by providing fiduciary digital-asset custody for Circle and affiliated entities, with a framework that could allow limited future services for regulated financial institutions. As a national trust bank, the institution will operate under federal supervision and fiduciary rules, without automatically functioning as a commercial, deposit-taking bank. Circle's announcement did not describe retail lending or insured deposit products, though it said reserve-management capabilities could be added within the approved framework. CEO Jeremy Allaire said federal oversight would strengthen governance and institutional infrastructure. Next milestones include a court filing that would formalize any BitClub dismissal and the launch of Circle National Trust's custody operations, which will bring ongoing examinations and compliance requirements under OCC supervision.