On July 15, a major scandal erupted in the U.S. Senate Judiciary Committee over the cryptocurrency policy of Acting Attorney General Todd Blanche. Democrats directly accused him of deliberately weakening investigations into crypto companies, which, in their view, undermines years of efforts to combat illegal operations in the digital sphere.
Dissolution of the Justice Department's Specialized Unit
The key point of criticism is Blanche's decision, made in April 2025, to disband the specialized unit of the Department of Justice that dealt exclusively with cryptocurrency crimes. According to Democratic senators, this step effectively paralyzed the oversight system for the industry and created a "regulatory vacuum" that is being actively exploited by bad actors.
Republican Opposition and High-Profile Cases
However, criticism came not only from Democrats. Republican Tom Tillis, traditionally friendly to the crypto industry, also expressed concern over several of Blanche's decisions. He paid particular attention to the case of Roman Storm and the World Liberty Financial project. Tillis emphasized that inconsistency in law enforcement creates dangerous precedents and undermines trust in both the judicial system and cryptocurrencies themselves.
Analytical Conclusion
This situation demonstrates a growing rift within the American establishment over the regulation of crypto assets. On one hand, we see attempts to ease pressure on the industry; on the other, stiff resistance from those who believe that without control, the crypto market will turn into a "Wild West." Personally, I view the dissolution of the specialized unit as an extremely risky step: it not only weakens the U.S. position in the fight against international cybercrime but also creates uncertainty for institutional investors who are waiting for clear rules of the game.