U.S. Senators Press DOJ Deputy AG Over Alleged Crypto Conflicts of Interest

• Six senators from the U.S. questioned Deputy Attorney General Todd Blanche about possible crypto conflicts of interest.
• The senators think that Blanche reduced the enforcement of cryptocurrencies at the DOJ in relation to his large digital assets.

Six senators from the U.S. questioned Deputy Attorney General Todd W. Blanche about possible conflicts of interest concerning his role in the enforcement of cryptocurrencies at the Department of Justice (DOJ). In January 2026, U.S. Senators Mazie K. Hirono, Elizabeth Warren, Richard Durbin, Sheldon Whitehouse, Christopher Coons, and Richard Blumenthal questioned Blanche about his reduction of the enforcement of cryptocurrencies at the DOJ in relation to his large digital assets.

The letter by the senators refers to the memorandum by Blanche in April 2025, in which he ordered the DOJ to decrease the number of enforcement actions regarding cryptocurrencies and to “dissolve” the National Cryptocurrency Enforcement Team. The letter points out that at the time of this memorandum, Blanche had “significant” investments in Bitcoin and Ethereum, estimated to be between $158,000 and $470,000. The senators think that his involvement in this policy issue, while still holding these assets, at least raises the appearance of a conflict of interest, which may violate 18 U.S.C. 208(a), a federal law that regulates the management of personal financial interests and the decision-making process in the executive branch.

Enforcement and Ethics Compliance Issues

The letter from the senators demands that Blanche furnish information and correspondence with ethics officials regarding his holdings and the date of his divestment, which took place several months after he agreed to divest his holdings earlier in the year. The senators gave Blanche until February 11, 2026, to furnish the necessary documents, underscoring congressional oversight of the DOJ policy changes that affect the digital asset industry. The senators also reiterated their previous concerns regarding the DOJ’s cryptocurrency enforcement policy, including the possibility of sanctions evasion and illicit finance.

Blanche and the DOJ had previously stated that the process of his financial disclosures and potential conflicts of interest had been properly reviewed and cleared in advance, although this has been disputed by ethics officials and lawmakers alike.

The letter written by the senators to Deputy Attorney General Blanche involves high-level ethical and legal issues about DOJ decision-making and personal financial interests in the context of cryptocurrency enforcement policy. By writing the letter, lawmakers are exercising their oversight role and highlighting the importance of transparency in federal enforcement actions that include emerging digital markets. The outcome of this investigation may influence future debates on ethics guidelines and digital assets regulation at federal agencies.

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