At a hearing of the U.S. Senate Judiciary Committee held on July 15, a heated debate unfolded over the nomination of Todd Blanche for Attorney General. Democrats leveled serious accusations against his actions as Acting Attorney General, accusing him of effectively sabotaging investigations into cryptocurrency companies.
A key point of criticism was Blanche's decision in April 2025 to disband a specialized unit of the Department of Justice that handled cases related to digital assets. According to Democratic senators, this move significantly weakened the department's ability to combat financial crimes in the crypto sphere and undermined trust in the regulatory system.
Notably, criticism came not only from Democrats. Republican Tom Tillis also expressed concern over certain aspects of Blanche's activities. He focused particular attention on two high-profile cases: the prosecution of developer Roman Storm and the situation surrounding the World Liberty Financial project. Tillis hinted that the Acting Attorney General's actions in these cases raise questions regarding the consistency and effectiveness of law enforcement.
My analysis: These hearings are a clear indicator that the issue of cryptocurrency regulation in the U.S. remains highly politicized. The disbandment of the specialized DOJ unit indeed appears to be a step backward, especially amid the growing activity of cybercriminals and fraudsters using digital assets. However, criticism from both Democrats and Republicans shows that there is currently no consensus within the American establishment on what effective crypto policy should look like. Blanche faces the difficult task of convincing the Senate of his ability to strike a balance between strict control and support for innovation.