President Donald Trump has removed Pam Bondi from her position as Attorney General and appointed her deputy, Todd Blanche, to head the U.S. Department of Justice. The leadership change places Blanche, a former deputy attorney general, in one of the most prominent law enforcement roles in the country. The move comes amid scrutiny over Blanche’s prior actions and financial holdings related to the cryptocurrency industry.
During his tenure as deputy attorney general, Blanche took steps to scale back federal oversight of the crypto sector. He dismantled the DOJ’s National Cryptocurrency Enforcement Team, a unit established to investigate criminal activity involving digital assets. He also directed prosecutors to refrain from pursuing cases involving regulatory violations within the cryptocurrency industry.
Questions have emerged regarding Blanche’s personal financial interests at the time he issued the crypto enforcement directive. According to available disclosures, Blanche held between $159,000 and $485,000 in various cryptocurrencies when he signed the memo scaling back crypto enforcement. This has raised concerns about a potential conflict of interest.
The situation appears to be in tension with ethics obligations that govern federal officials. Blanche had reportedly pledged to divest his cryptocurrency holdings before engaging in work related to crypto matters. His decision to sign the enforcement memo while still holding those assets may constitute a violation of that commitment and applicable ethics rules.
The combination of his financial stake in digital assets and his role in shaping federal enforcement policy toward the crypto industry has drawn attention from observers concerned about the integrity of the decision-making process. The extent to which ethics authorities may review the matter has not been detailed in available reporting.
Originally reported by CoinDesk.
