Acting US Attorney General Todd Blanche faced Senate Judiciary Committee scrutiny Wednesday over the Justice Department's crypto enforcement actions as lawmakers examined his nomination to lead the agency. Senator Dick Durbin criticized Blanche for dismantling the DoJ's crypto enforcement unit in April 2025 and accused the administration of conflicts of interest tied to President Trump's crypto business dealings, including a $1.4 billion stake in World Liberty Financial and former Binance CEO Changpeng Zhao's presidential pardon. The Senate confirmation requires a simple majority with Republicans holding a 52-47 margin as Senator Mitch McConnell remains hospitalized.
Senator Durbin Links Crypto Unit Disbanding to Trump Financial Interests
Ranking Democrat Senator Dick Durbin used his opening statement at the Senate Judiciary Committee hearing to criticize Blanche for "dismantling DoJ's enforcement team and shutting down ongoing criminal investigations of the crypto industry." Blanche was reportedly behind the disbanding of the Justice Department's crypto enforcement unit in April 2025 as deputy attorney general.
![Todd Blanche speaking at his confirmation hearing before the Senate Judiciary Committee on Wednesday]()
Todd Blanche speaking at his confirmation hearing before the Senate Judiciary Committee on Wednesday. Source: Associated Press
The Illinois lawmaker said that Blanche's order dismantling the DoJ's crypto unit enabled Trump to earn $1.4 billion from his ties to the industry, including his family's business World Liberty Financial. Durbin accused former Binance CEO Changpeng "CZ" Zhao of "broker[ing] a deal to channel $2 billion" into World Liberty, which led to a presidential pardon. The former CEO agreed in 2023 to plead guilty to one felony charge related to the Anti-Money Laundering regime at the exchange. "Every smarmy, suspect deal in this administration has cryptocurrency behind the curtain," said Durbin.
Republican Senator Thom Tillis also raised crypto-related questions, stating he was "concerned that the Binance CEO got pardoned." Blanche said that he would review the pardon process if confirmed.
Blanche Signals Policy Shift Against Prosecuting Blockchain Developers
The Trump AG pick was behind a 2025 memo "ending regulation by prosecution" in the crypto industry and previously held at least $159,000 worth of digital asset-related investments before divesting them to his children and grandchildren. He has been serving as acting US Attorney General since Pamela Bondi's firing in April.
Blanche told crypto holders shortly after his appointment that officials would not pursue cases into blockchain developers who were not responsible for illicit activity on platforms. "[I]f you are developing software, if you are a coder, if you are part of that process and you are not the third-party user, and you are not helping and knowing the third party is using what you developed to commit crimes, you are not going to be investigated and not going to be charged," Blanche said at the Bitcoin 2026 conference.
Justice Department Maintains Ongoing Cases Against Tornado Cash Developer
The department still has ongoing cases against developers behind platforms allegedly used for illegal activities. Federal prosecutors are expected to retry Tornado Cash co-founder Roman Storm later this year after a jury failed to reach a verdict on two charges in 2025.
FAQ
What did Senator Durbin criticize Todd Blanche for during the Senate hearing?
Senator Dick Durbin criticized Todd Blanche for dismantling the Justice Department's crypto enforcement unit in April 2025 and shutting down ongoing criminal investigations of the crypto industry. Durbin also accused the administration of conflicts of interest related to Trump's $1.4 billion crypto business ties and the presidential pardon of former Binance CEO Changpeng Zhao.
What is Todd Blanche's policy on prosecuting blockchain developers?
Blanche stated that officials would not pursue cases against blockchain developers who are not responsible for illicit activity on platforms. He said at the Bitcoin 2026 conference that coders developing software who are not third-party users and not knowingly helping third parties commit crimes would not be investigated or charged.
