Senator Dick Durbin on Wednesday accused acting U.S. Attorney General Todd Blanche of dismantling the Justice Department's crypto enforcement unit in a move that benefited President Donald Trump's digital asset businesses. During a Senate Judiciary Committee hearing, Durbin claimed the April 2025 decision allowed Trump to earn an estimated $1.4 billion from crypto ventures, including World Liberty Financial. Durbin also alleged that former Binance CEO Changpeng Zhao helped steer a $2 billion investment into the Trump-linked project before receiving a presidential pardon.
Democrats Link Crypto Oversight to Ethics
Several Senate Democrats are tying ethics concerns to pending crypto legislation. Senators Chris Murphy, Jeff Merkley, and Chris Van Hollen said they cannot back the Digital Asset Market Clarity Act unless it includes enforceable conflict-of-interest rules for senior officials and their families. Murphy argued there is "no reason to pass a new regulatory system for crypto if this system does not stop Trump's corruption." Merkley has called for restrictions covering the president, vice president, Cabinet members, and Congress, while Van Hollen also demands stronger consumer protections and anti-crime measures.
Blanche Defends New Enforcement Approach
Blanche, who became acting attorney general after Pamela Bondi's dismissal in April, defended his approach. He ended what he called "regulation by prosecution" in crypto and said developers who do not knowingly assist criminal activity would not be targeted. Republican Senator Thom Tillis pressed Blanche on the Zhao pardon, and Blanche replied he would review the process if confirmed. Financial disclosures show Blanche previously held at least $159,000 in digital asset investments, which he transferred to family members. Despite the policy shift, the Justice Department continues some crypto cases, including the retrial of Tornado Cash co-founder Roman Storm. Blanche's confirmation hinges on the Republican-controlled Senate, which holds a 52-47 majority while Senator Mitch McConnell remains hospitalized.