Deputy Attorney General Todd Blanche has come under scrutiny from six Democratic senators who allege a conflict of interest related to his decision to halt investigations into cryptocurrency companies and disband the Justice Department’s National Cryptocurrency Enforcement Team. The senators cited a report revealing Blanche owned significant cryptocurrency holdings at the time he issued a memo ending aggressive crypto prosecutions, raising questions about whether his financial interests influenced his actions. Blanche had signed an ethics agreement promising to divest his crypto assets within 90 days of confirmation and to recuse himself from related matters until then.
The senators, who serve on the Senate Judiciary Committee, have requested detailed information on how Blanche’s decisions were reviewed and approved, and have called for transparency regarding his communications with ethics officials and the crypto industry. Their concerns follow a Campaign Legal Center complaint urging an inspector general investigation into whether Blanche violated federal conflict of interest laws by benefiting from his crypto investments after changing enforcement policies.
**Why this matters:**
The allegations highlight potential ethical issues in the Justice Department’s handling of cryptocurrency regulation, a rapidly growing and complex sector. If true, the conflict of interest could undermine public trust in the impartiality of law enforcement decisions, especially as cryptocurrency is linked to financial crimes such as money laundering and sanctions evasion. The outcome of this inquiry may influence future oversight and enforcement actions in the crypto space.
Source: NewsData