Democrats Press DOJ Deputy Over Crypto Holdings, Enforcement Retreat
Six Democratic senators accused Deputy Attorney General Todd Blanche of violating federal conflict-of-interest law by easing crypto enforcement while holding between $158,000 and $470,000 in Bitcoin and Ethereum. Blanche issued a policy memo in 2025 scaling back DOJ action against crypto exchanges and related services, despite promising to divest his crypto assets. Instead, he reportedly transferred some assets to relatives instead of fully liquidating. The senators argue this created a conflict of interest and cite 18 U.S.C. § 208(a), which bars federal officials from participating in matters affecting their financial interests. They demand records of Blanche’s crypto dealings, communications with industry representatives, and clarification on why divestment was delayed. The lawmakers also highlight increased illicit crypto activity since the policy change, referencing a Chainalysis report showing a 162% surge, and warn of national security risks. Others point out the broader issue is transparency, noting public officials hold many asset types and that direct evidence of undue influence is needed before reaching conclusions.
