Senate Democrats pressed Acting U.S. Attorney General Todd Blanche hard at his confirmation hearing Wednesday, accusing him of softening federal crypto enforcement at a moment when former President Donald Trump’s digital-asset businesses have rapidly expanded.
In his opening remarks to the Senate Judiciary Committee, Illinois Senator Dick Durbin said Blanche’s actions while serving as deputy attorney general helped dismantle the Justice Department’s concentrated focus on crypto crime — a move Durbin argued benefited Trump’s financial interests. Durbin pointed specifically to a reported decision to disband the DOJ’s crypto enforcement unit in April 2025, contending that the change cleared the way for Trump to generate roughly $1.4 billion from crypto-related ventures, including activities tied to World Liberty Financial. Trump denies any wrongdoing related to his digital-asset businesses.
Durbin also accused former Binance CEO Changpeng “CZ” Zhao of funnelling a roughly $2 billion investment into World Liberty Financial before later receiving a presidential pardon. Zhao pleaded guilty in 2023 to a felony charge involving anti-money-laundering violations at Binance. “Every smarmy, suspect deal in this administration has cryptocurrency behind the curtain,” Durbin told colleagues.
Beyond the targeted criticism of Blanche, Democratic senators used the hearing to push for stronger ethics and conflict-of-interest rules in any new crypto law. Senators Chris Murphy, Jeff Merkley and Chris Van Hollen have said they cannot back the Digital Asset Market Clarity Act unless it includes enforceable provisions preventing senior officials and their families from profiting from industries they regulate — a concern they tied directly to Trump’s memecoin and World Liberty Financial. Murphy said Congress should not create a fresh regulatory structure for digital assets unless it stops public officials from benefiting financially from the industries they oversee. Merkley called for broad ethics restrictions covering the president, vice president, Cabinet officials and members of Congress, while Van Hollen demanded beefed-up consumer protections and anti-crime measures. Senator Elizabeth Warren has floated similar proposals.
Republican Senator Thom Tillis pressed Blanche on the presidential pardon for Zhao; Blanche said he would review the pardon process if confirmed as attorney general.
Blanche, who has been acting attorney general since Pamela Bondi’s dismissal in April, previously issued a Justice Department memorandum arguing against “regulation by prosecution” in crypto — guidance that critics say limits prosecutorial options. Financial disclosures also show Blanche once held at least $159,000 in digital-asset-related investments before transferring those holdings to his children and grandchildren.
At the Bitcoin 2026 conference after becoming acting attorney general, Blanche said federal prosecutors should avoid targeting software developers who merely write code and do not knowingly help others commit crimes. He emphasized that developers who aren’t third-party users of their software and who don’t knowingly assist criminal behavior should not face investigation or charges.
Even as Blanche frames a narrower prosecutorial approach, the Justice Department continues to pursue high-profile crypto cases. Federal prosecutors plan to retry Tornado Cash co-founder Roman Storm later this year after a jury in 2025 failed to reach a verdict on two charges.
Blanche’s confirmation now moves to the Republican-controlled Senate, where the GOP holds a slim 52–47 majority. Senate dynamics are further complicated by Senate Minority Leader Mitch McConnell’s hospitalization following a fall that resulted in pneumonia, a factor Democrats noted could shape the confirmation timeline.
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