Acting U.S. Attorney General Todd Blanche faced sharp criticism at a Senate Judiciary Committee hearing on Wednesday as lawmakers weighed his nomination to lead the Justice Department. The backlash centered on how the department has pursuedโ or deprioritizedโcrypto-related enforcement, particularly in cases involving the broader developer ecosystem.
Senator Dick Durbin, the ranking Democrat on the committee, used portions of his opening statement to accuse Blanche of weakening DOJโs crypto enforcement capacity. Durbin referenced Blancheโs reported role in dismantling a DOJ crypto enforcement unit in April 2025 while he was deputy attorney general, arguing that the move left ongoing investigations effectively โshut downโ during the Trump administrationโs push toward different enforcement priorities.
Key takeaways
- Durbinโs criticism ties Blancheโs prior DOJ actions to a broader shift in crypto enforcement, including alleged โdismantlingโ of the departmentโs crypto unit.
- Questions from Republicansโincluding concerns about Changpeng โCZโ Zhaoโs presidential pardonโhighlight ongoing political scrutiny of crypto outcomes.
- Blanche signaled a framework that aims to avoid charging developers who are not implicated in third-party wrongdoing.
- The committee vote math remains tight, with the confirmation process dependent on the Senate sessionโs practical majority rules.
Durbinโs attack on Blancheโs crypto enforcement record
At Wednesdayโs hearing, Durbin argued that Blancheโs decisions as deputy attorney general enabled President Donald Trump to benefit financially from ties to the crypto industry. Durbin referenced reports that Blanche helped disband DOJโs crypto enforcement unit in April 2025, citing Fortuneโs reporting on the restructuring.
Durbin also alleged that Trumpโs business interests, including family-linked World Liberty Financial, were connected to deals involving cryptocurrency. He further accused Binanceโs former CEO Changpeng โCZโ Zhao of โbroker[ing] a deal to channel $2 billionโ into World Libertyโan accusation Durbin tied to Zhaoโs later presidential pardon. The hearing remarks referenced Zhaoโs 2023 agreement to plead guilty to a felony charge related to the exchangeโs Anti-Money Laundering (AML) compliance.
Blancheโs nomination comes as the political stakes around DOJ leadership and enforcement priorities remain high. In addition to crypto policy, Republicans and Democrats are also disputing DOJโs broader approach to issues such as immigration enforcement and how the department is handling sensitive political matters.
Confirmation dynamics: narrow path in the Senate
Blancheโs path depends on committee progress and then a Senate confirmation vote if his nomination advances. As of the hearing, the Senate Republican leadership, including Senator Mitch McConnell, faced an operational challenge: McConnell was still hospitalized after a fall described by his team as resulting in pneumonia. That uncertainty contributes to a slim margin in the Senateโdescribed as 52-47 in favor of Republicansโmeaning procedural details about attendance could become decisive for confirmation.
While Republicans hold the majority needed for a confirmation if a simple majority of lawmakers present supports the nominee, the nomination also faces targeted scrutiny. The hearing record suggests that lawmakers are not only debating the technical enforcement posture toward crypto, but also broader concerns about whether DOJ leadership will align with the administrationโs political goals.
Blancheโs response: avoiding cases against โcodersโ not tied to wrongdoing
In addition to the political debate, Blanche addressed how DOJ intends to treat crypto software developers. According to a DOJ memo referenced at the hearing and later described in related coverage, the administrationโs approach was framed as moving away from enforcement that โregulates by prosecution,โ with the memo focused on shifting how the DOJ engages with the crypto sector. The memo was published by DOJ (see this DOJ document).
Blanche told crypto holders shortly after taking the acting role that officials would not pursue cases into blockchain developers who were not responsible for illicit activity on platforms. In remarks carried during industry coverageโspecifically at the Bitcoin 2026 conferenceโBlanche indicated that DOJ would not investigate software developers when the developer is not a third-party user and is not knowingly helping someone commit crimes.
As quoted in the underlying reporting, Blanche described the distinction as follows: if someone is developing software or coding as part of the process, and is neither a user nor knowingly enabling third parties who commit crimes, then DOJ would not investigate or charge them. That is a notable signpost for developers and open-source contributors, because it suggests DOJโs enforcement posture may be more carefully calibrated around scienter and direct involvement rather than broader theories that could sweep in peripheral actors.
What remains uncertain: ongoing prosecutions and โplatformโ cases
Even with Blancheโs emphasis on limiting charges against uninvolved coders, the department is not abandoning crypto enforcement altogether. The reporting around the hearing notes that DOJ still has ongoing cases against developers tied to platforms allegedly used for illegal activities. In other words, the line Blanche drew in public comments appears designed to narrow where DOJ looks for culpability, rather than eliminate enforcement.
Federal prosecutors are also expected to retry Tornado Cash co-founder Roman Storm later this year after a 2025 jury failed to reach a verdict on two charges. That procedural detail matters because it indicates that core enforcement actions connected to sanctioned or laundering-linked services are continuing through the courts, even as lawmakers debate whether the DOJโs approach to developers is shifting.
For readers, the next watchpoint is whether Blancheโs confirmation will lead to measurable changes in charging decisionsโespecially how prosecutors apply intent and involvement standards to developers. The hearing made clear that political conflict and enforcement strategy will run in parallel, but the real test will be in the cases that move forward and those that get narrowed or dismissed.






