Senate Democrats escalated their attack on Acting U.S. Attorney General Todd Blanche at his confirmation hearing, accusing him of rolling back crypto enforcement just as former President Donald Trump’s digital-asset interests grew.
Sen. Dick Durbin opened Wednesday’s Senate Judiciary Committee session by saying Blanche, while deputy attorney general, helped dismantle the Justice Department’s crypto enforcement unit in April 2025. Durbin claimed that move cleared the way for Trump’s crypto ventures to flourish, estimating the former president has earned about $1.4 billion from crypto-related activities that include his family’s ties to World Liberty Financial. Trump has denied any wrongdoing related to his digital-asset businesses.
Durbin also tied the episode to high-profile executive action: he alleged that former Binance CEO Changpeng “CZ” Zhao funneled roughly $2 billion into World Liberty Financial before later receiving a presidential pardon. Zhao, who pleaded guilty in 2023 to a felony tied to anti-money-laundering violations at Binance, was central to Durbin’s critique that “every smarmy, suspect deal in this administration has cryptocurrency behind the curtain.”
The hearing quickly broadened from Blanche’s fitness for the Justice Department’s top job to the larger question of whether Congress should tighten ethics rules as it writes new crypto law. Several Senate Democrats — including Chris Murphy, Jeff Merkley and Chris Van Hollen — say they can’t back the proposed Digital Asset Market Clarity Act unless it includes enforceable conflict-of-interest provisions that bar senior officials and their families from profiting from industries they regulate. Murphy bluntly warned that there’s “no reason to pass a new regulatory system for crypto if this system does not stop Trump’s corruption.” Merkley and Van Hollen pressed for additional ethics restrictions, stronger consumer protections and tougher anti-crime measures. Sen. Elizabeth Warren has pushed similar limits.
Republicans pressed Blanche on related matters as well. Sen. Thom Tillis questioned Blanche about the CZ pardon; Blanche told senators he would review the pardon process if confirmed as attorney general.
Blanche has served as acting attorney general since Pamela Bondi was dismissed in April. Earlier this year he issued a Justice Department memo declaring an end to what he called “regulation by prosecution” in the crypto industry. He has also publicly said prosecutors should not pursue software developers who merely write code without knowingly facilitating criminal activity. Speaking at Bitcoin 2026, Blanche said developers who don’t knowingly assist crime and who aren’t third‑party users of their software should not be targeted.
Financial disclosures revealed Blanche previously held at least $159,000 in crypto-related investments before transferring those holdings to his children and grandchildren — a point Democrats raised during the hearing.
Despite Blanche’s policy stance, the Justice Department continues to pursue several crypto cases. Federal prosecutors are preparing a retrial this year for Tornado Cash co‑founder Roman Storm after a 2025 jury deadlocked on two charges.
Blanche’s confirmation now awaits action in a narrowly divided Republican-controlled Senate (52–47), with Senate operations further complicated by Majority Leader Mitch McConnell’s ongoing hospitalization following a fall that led to pneumonia.
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