U.S. Senators Mazie K. Hirono, Elizabeth Warren, and Dick Durbin have sent a letter to Deputy Attorney General Todd Blanche, questioning his decision last year to disband the Department of Justice’s National Cryptocurrency Enforcement Team (NCET) and halt investigations into tools used for cryptocurrency crime. The inquiry comes after reports revealed that Blanche held over $150,000 in cryptocurrency at the time of his decision.
The senators referenced a ProPublica investigation which indicated Blanche may have violated federal conflict-of-interest laws by making policy changes that could benefit the cryptocurrency industry while owning significant crypto assets himself. According to the letter, “Last year, we asked for the rationale behind your puzzling decision to scale back the Department of Justice’s (DOJ) cryptocurrency enforcement efforts and urged you to reconsider. We write now in light of recent reporting that you held substantial amounts of cryptocurrency at the time you made this decision,” wrote the senators. “At the very least, you had a glaring conflict of interest and should have recused yourself.”
In their previous correspondence with Blanche, the senators warned that reducing DOJ’s focus on cryptocurrency enforcement would likely enable further criminal activity such as sanctions evasion, drug trafficking, scams, and child sexual exploitation. They stated in their latest letter: “Unfortunately, our predictions have proven correct, with illicit cryptocurrency activity soaring 162% in 2025,” continuing that this rise was mainly due to increased transactions involving sanctioned entities but also included other forms of crypto-related crime.
The senators also noted concerns about possible motivations behind Blanche’s actions: “But the fact that you held substantial amounts of cryptocurrency at the time you made this decision calls into question your own motivations.” The timeline outlined in their letter details when Blanche disclosed his holdings, promised divestment, was confirmed as Deputy Attorney General, issued a memo scaling back enforcement efforts, and eventually sold or transferred his crypto assets.
The lawmakers allege these actions may constitute a violation of 18 U.S.C. § 208(a), which prohibits executive branch employees from participating in decisions where they have a financial interest.
Blanche has been asked to provide communications and documentation regarding how he handled his crypto holdings and potential conflicts before making decisions on DOJ policy. The senators are seeking answers by February 11, 2026.
The letter is also signed by Senators Sheldon Whitehouse (D-RI), Chris Coons (D-DE), and Richard Blumenthal (D-CT).
“Proper enforcement of our nation’s laws against criminals using cryptocurrency is of vital importance. To that end, we request answers to these questions and production of the requested materials as soon as possible and no later than February 11, 2026,” concluded the senators.
