Senator Slams AG Nominee Over Crypto Enforcement Rollback and CZ Pardon

Acting US Attorney General Todd Blanche faced sharp criticism during his Senate confirmation hearing Wednesday over his role in scaling back the Justice Department’s crypto enforcement efforts and the presidential pardon of former Binance CEO Changpeng Zhao.

Durbin Links Crypto Policy to Trump’s Financial Ties

Senate Judiciary Committee ranking member Dick Durbin used his opening remarks to accuse Blanche of dismantling the DoJ’s crypto enforcement team and halting ongoing criminal investigations into the industry. Durbin said this shift allowed President Trump to earn $1.4 billion through his crypto related ventures, including the family linked World Liberty Financial. He further alleged that Zhao helped arrange a $2 billion investment into World Liberty that preceded his pardon, calling the pattern indicative of cryptocurrency’s influence throughout the administration’s dealings. Zhao had pleaded guilty in 2023 to a felony charge tied to anti-money laundering failures at Binance.

Narrow Path to Confirmation

Republicans hold a slim 52-47 Senate majority, further complicated by Senator Mitch McConnell’s ongoing hospitalization. Blanche also faces criticism over DoJ immigration actions, handling of the Epstein files, and concerns he could be used to pursue Trump’s political opponents. Republican Senator Thom Tillis also raised concerns about the Zhao pardon, prompting Blanche to say he would review the pardon process if confirmed.

Shift on Prosecuting Developers

Blanche previously issued a memo ending what he called “regulation by prosecution” in crypto and said coders who aren’t directly involved in illicit activity by platform users won’t face charges. The DoJ still has active cases, including a planned retrial of Tornado Cash co-founder Roman Storm after a previous jury deadlock.