Senators press DOJ for information regarding Blanche's ties to cryptocurrencies.

• Senators question DOJ about conflicts with cryptocurrencies.
• Blanche reportedly held bitcoin and ether during decisions.
• Cryptocurrency regulation becomes the target of political debate.

Six U.S. senators sent a letter to Deputy Attorney General Todd W. Blanche requesting clarification regarding potential conflicts of interest related to recent decisions involving cryptocurrency oversight. The group claims that Blanche held significant stakes in digital assets while working on measures that reduced the Justice Department's involvement in the sector.

The document was signed by Elizabeth Warren, Mazie K. Hirono, Richard J. Durbin, Sheldon Whitehouse, Christopher A. Coons, and Richard Blumenthal. In the letter, the lawmakers reiterate previous concerns about the reduction of federal efforts against cryptocurrency-related crimes and point to new information about Blanche's personal investments at the time of the decisions.

“Last year, we requested the rationale behind his disconcerting decision to reduce the Department of Justice’s efforts regarding cryptocurrencies and urged him to reconsider.”

“We are writing now in light of recent reports indicating that you held substantial amounts of cryptocurrency at the time you made that decision… At the very least, you had a clear conflict of interest and should have recused yourself.”

Senators allege that Blanche held bitcoin and ether holdings valued between $158 and $470 when she published her financial statements in April 2025. Entitled “End of Regulation through Judicial Processes,” the text instructed prosecutors to avoid prosecuting cryptocurrency brokers, mixers, and platforms for user conduct, prioritizing individuals directly involved in criminal activities.

According to the parliamentarians, they had already warned that this approach could open the door to sanctions evasion, drug trafficking, scams, and the sexual exploitation of minors. The letter also states that there has been an increase in different types of crimes involving cryptocurrencies, including operations associated with Chinese money laundering networks.

The timeline described in the document indicates that Blanche would have sold or transferred her cryptocurrencies only between May and June, after having already promised to divest the assets months earlier. According to the senators, her participation in decisions related to the sector while maintaining personal investments “appears to have violated Section 208(a) of Title 18 of the United States Code.” “Willful violations of this provision are punishable by up to five years in prison,” the senators stated.

The Department of Justice recently stated that the issue involving Blanche “was properly flagged, addressed, and resolved in advance” and dismissed the allegations as unfounded. In the new letter, the senators request details on how the case was internally reviewed, including records of communications with ethics authorities and any formal authorizations.

The debate is taking place amid a broader political environment in which lawmakers have also raised concerns about potential conflicts of interest linked to current US President Donald Trump's digital asset initiatives and pardons granted to figures associated with cryptocurrency crimes.