Senate Democrats have intensified scrutiny of Acting U.S. Attorney General Todd Blanche during his confirmation hearing, accusing him of weakening crypto enforcement while President Donald Trump’s digital asset businesses have expanded.
According to proceedings from the Senate Judiciary Committee hearing on Wednesday, Senator Dick Durbin used his opening remarks to argue that Blanche helped dismantle the Justice Department’s crypto enforcement efforts while serving as deputy attorney general, saying those decisions benefited Trump’s financial interests in the digital asset sector.
Durbin pointed to Blanche’s reported role in disbanding the Justice Department’s crypto enforcement unit in April 2025. The Illinois senator argued that removing the unit allowed Trump to earn an estimated $1.4 billion from crypto-related ventures, including his family’s involvement with World Liberty Financial. Trump has denied wrongdoing connected to his digital asset businesses.
Adding to his criticism, Durbin alleged that former Binance CEO Changpeng “CZ” Zhao helped channel a $2 billion investment into World Liberty Financial before later receiving a presidential pardon.
Zhao pleaded guilty in 2023 to a felony charge tied to anti-money laundering violations at Binance. Durbin told lawmakers, “Every smarmy, suspect deal in this administration has cryptocurrency behind the curtain.”
Democrats tie crypto oversight to ethics concerns
Beyond Blanche’s nomination, several Senate Democrats have continued pressing for stricter ethics safeguards in crypto legislation.
Senators Chris Murphy, Jeff Merkley and Chris Van Hollen have said they cannot support the Digital Asset Market Clarity Act unless lawmakers add enforceable conflict-of-interest rules covering senior government officials and their families. Their objections focus on Trump’s crypto ventures, including his memecoin and World Liberty Financial.
Murphy argued Congress should not establish a new regulatory framework for digital assets unless it prevents public officials from profiting from industries they oversee. He said there was “no reason to pass a new regulatory system for crypto if this system does not stop Trump’s corruption.”
Merkley has called for ethics restrictions covering the president, vice president, Cabinet officials and members of Congress, while Van Hollen has said the legislation also requires stronger consumer protections and anti-crime provisions before he could support it.
Senator Elizabeth Warren has advanced similar proposals calling for tighter restrictions on crypto profits involving senior government officials.
Blanche defends new DOJ approach to crypto cases
As the hearing continued, Republican Senator Thom Tillis questioned Blanche about Zhao’s presidential pardon, saying he remained concerned by the decision. Blanche responded that he would review the pardon process if confirmed as attorney general.
Blanche has served as acting U.S. attorney general since Pamela Bondi was dismissed in April. Earlier this year, he issued a Justice Department memorandum ending what he described as “regulation by prosecution” in the crypto industry.
Financial disclosures also showed Blanche previously held at least $159,000 in digital asset-related investments before transferring those holdings to his children and grandchildren.
Speaking at the Bitcoin 2026 conference after becoming acting attorney general, Blanche said federal prosecutors should not target software developers who merely write code without knowingly assisting criminal activity. He stated that developers who are not third-party users of their software and who do not knowingly help others commit crimes would not be investigated or charged.
Even with that policy, the Justice Department continues to pursue several crypto-related prosecutions. 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 during his 2025 trial.
Blanche’s confirmation now depends on the Republican-controlled Senate, where the party holds a narrow 52-47 majority while Senator Mitch McConnell remains hospitalized following a fall that led to pneumonia.
