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Trump AG pick Todd Blanche grilled over crypto enforcement and CZ pardon

Trump AG pick Todd Blanche grilled over crypto enforcement and CZ pardon

Senators questioned Blanche over his crypto holdings, the dismantling of a Justice Department enforcement unit, and whether a softer DOJ stance could become long-term policy.

TRUMP

Fact Check
All four caller-supplied leads and additional corroboration confirm the claim. The Cointelegraph and crypto.news reports document the July 15, 2026 Senate confirmation hearing where Sen. Dick Durbin grilled acting AG Todd Blanche over crypto enforcement, his personal crypto holdings (~$159,000), the April 2025 dismantling of the DOJ crypto enforcement unit (NCET), and the pardon of Changpeng Zhao. The Fortune primary source independently confirms Blanche disbanded NCET in April 2025, and The Guardian confirms Trump pardoned Zhao. The claim's key elements — questioning over crypto holdings, DOJ enforcement unit dismantling, CZ pardon, and whether a softer DOJ stance could become long-term policy — are all directly supported.
Summary

Todd Blanche, President Donald Trump’s nominee for US Attorney General, faced scrutiny at a Senate Judiciary Committee hearing over his personal crypto holdings, the Justice Department’s rollback of crypto enforcement, and the pardon of former Binance CEO Changpeng Zhao. Senator Dick Durbin said Blanche moved early in his tenure as deputy attorney general to dismantle the department’s crypto enforcement team and shut down ongoing criminal investigations, referring to the April 2025 disbanding of the National Cryptocurrency Enforcement Team. Durbin also tied the policy shift to Trump’s crypto interests, saying the move helped clear the way for Trump to bring in $1.4 billion from his family’s cryptocurrency business, including World Liberty Financial, and alleging Zhao later benefited from a presidential pardon after a deal that he said channeled funds into the Trump-linked venture. Blanche, who has served as acting attorney general since April and is now seeking permanent confirmation, also faced questions about holdings that Durbin said totaled at least $159,000 in crypto-related assets before being divested and transferred within his family. Blanche has defended his April 2025 memo, titled “Ending Regulation by Prosecution,” as a shift away from targeting crypto platforms toward pursuing individual bad actors involved in fraud and other crimes. That policy change, which disbanded the DOJ’s specialist crypto unit, is viewed as a major structural reset for US digital-asset enforcement because rebuilding such a team would require a fresh effort and a reversal of the department’s current direction. Republican Senator Thom Tillis also said he was concerned Zhao had been pardoned, and Blanche replied he would review the pardon process if confirmed. The department still has active developer-related cases, including a planned retrial later this year for Tornado Cash co-founder Roman Storm after a 2025 jury failed to reach a verdict on two charges.

Terms & Concepts
  • National Cryptocurrency Enforcement Team: A Justice Department unit created to handle crypto-related criminal investigations and prosecutions.
  • regulation by prosecution: A criticism of using enforcement actions, rather than clear rules, to shape how an industry operates.
  • Tornado Cash: A crypto platform whose co-founder has faced U.S. criminal prosecution tied to alleged illicit use of the service.