Six U.S. Senators have sent a letter to Deputy Attorney General Todd W. Blanche, seeking details regarding potential conflicts of interest in his decision to scale back the Department of Justice’s cryptocurrency enforcement. The letter raises concerns that Blanche held significant cryptocurrency holdings while directing the disbanding of the DOJ’s National Cryptocurrency Enforcement Team.
Allegations of Financial Conflict
The letter claims Blanche owned Bitcoin and Ether valued between $158,000 and $470,000 when he issued the memo titled “Ending Regulation by Prosecution” in April 2025. The memo instructed prosecutors to focus on individuals committing crimes with crypto, rather than targeting platforms such as exchanges or mixers for users’ actions. Senators argue that this decision, while Blanche held crypto assets, created a potential conflict of interest under 18 U.S.C. § 208(a), which prohibits executive branch employees from participating in matters where they have a financial stake.
Concerns Over Enforcement and Divestment
The Senators highlighted that Blanche delayed divesting his crypto holdings despite agreeing to do so, raising questions about oversight and ethics compliance. They requested a detailed explanation of the actions taken, communications with ethics officials, and justification for the timing of divestment. Ethics watchdog groups have also filed complaints urging the DOJ inspector general to investigate the alleged conflict.
The DOJ has stated the issue was appropriately flagged and addressed, calling the allegations baseless. The Senators have requested a full response by February 11, 2026, as scrutiny continues over the integrity of crypto enforcement policies.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.