A sharp rebuke echoed through the Senate Judiciary Committee hearing room: ‘Every smarmy, suspect deal in this administration has cryptocurrency behind the curtain.’ The statement was delivered by Democratic Senator Dick Durbin, targeting Todd Blanche, the acting US Attorney General undergoing his confirmation hearing. The allegation is severe: Blanche undermined crypto law enforcement just as President Donald Trump’s digital asset ventures were flourishing.
Disbanded DOJ Crypto Unit
Durbin pointed to a specific decision: the disbandment of the Department of Justice (DOJ) cryptocurrency enforcement unit in April 2025, when Blanche was serving as deputy attorney general. According to Durbin, the move financially benefited Trump. He estimated Trump netted around $1.4 billion from crypto-related businesses, including his family’s involvement in World Liberty Financial. Trump has denied any wrongdoing regarding his digital asset ventures.
Blanche stepped up as acting attorney general after Pam Bondi was dismissed in April. Earlier this year, he issued a DOJ memo ending what he termed ‘regulation by prosecution’ in the crypto industry - including a policy that software developers who purely write code without intentionally aiding crimes will not be investigated or charged. Financial disclosures show Blanche previously held at least $159,000 in digital asset-related investments before transferring them to his children and grandchildren.
Pardon for CZ and a $2 Billion Investment
The fiercest part of Durbin’s attack centered on Changpeng ‘CZ’ Zhao. According to Durbin, the former Binance CEO helped channel a $2 billion investment into World Liberty Financial - before later receiving a presidential pardon from Trump. Zhao pleaded guilty in 2023 to criminal charges related to anti-money laundering violations at Binance, prompting sharp questions regarding the interests behind the pardon.
Notably, this unease did not originate solely from Democrats. Republican Senator Thom Tillis also questioned Blanche regarding Zhao’s pardon and stated he remained concerned about the decision. Blanche responded that he would review the pardon process if confirmed as attorney general.
CLARITY Act Caught in the Crossfire
The controversy has spilled over into the broader crypto legislative agenda. Several Democratic senators - Chris Murphy, Jeff Merkley, and Chris Van Hollen - stressed that they will not support the Digital Asset Market Clarity Act (CLARITY Act) unless binding conflict-of-interest rules are added for senior government officials and their families. Their concerns center on Trump’s crypto ventures, including meme coins and World Liberty Financial. ‘No reason to pass a new regulatory system for crypto if this system does not stop Trump’s corruption,’ Murphy said. Senator Elizabeth Warren also pushed a similar proposal to tighten restrictions on crypto profits for senior officials.
Although Blanche’s memo eased enforcement pressure, the DOJ has not halted cases entirely: federal prosecutors are scheduled to retry Tornado Cash co-founder Roman Storm this year after a jury deadlocked on two charges in a 2025 trial.
Blanche’s fate now hangs in the balance in a Republican-controlled Senate with a slim 52-47 majority - a margin made even more precarious with Senator Mitch McConnell hospitalized following a fall and pneumonia. What is at stake is not merely the attorney general seat, but an unresolved question: can US crypto rules be drafted by an administration whose own family is actively playing in the market?
Reported via crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
