Todd Blanche, the architect of the Justice Department's dramatic shift away from aggressive crypto enforcement, is now interim Attorney General.
Think about that for a second.
The same person who issued the April 7, 2025 memo titled "Ending Regulation by Prosecution"—disbanding the National Cryptocurrency Enforcement Team and ordering prosecutors to stop targeting virtual currency exchanges, mixing services, and offline wallets for regulatory violations—is now leading the entire department .
That is not a small change.
That is a signal.
From Deputy to Acting AG
Blanche's elevation comes after President Trump removed Pam Bondi as Attorney General on April 2, 2026, reportedly over her handling of the Epstein files . As Deputy Attorney General since March 2025, Blanche had already orchestrated a fundamental restructuring of the DOJ's approach to digital assets. His memo declared that the department "is not a digital assets regulator" and would no longer pursue "enforcement actions that have the effect of superimposing regulatory frameworks on digital assets" .
The approach is clearly moving away from heavy crackdowns and toward something more open.
What Changed Under Blanche
The Blanche Memo fundamentally altered the DOJ's crypto enforcement priorities:
- Disbanded the National Cryptocurrency Enforcement Team (NCET), which had secured convictions in major cases including the 110 million fraud scheme and the Binance investigation
- Directed prosecutors to focus on individual actors who victimize investors—embezzlement, scams, rug pulls, and hacking—rather than platforms and service providers
- Instructed that regulatory violations (unlicensed money transmission, Bank Secrecy Act violations, unregistered securities) only be charged when "knowing and willful"
- Ordered the Market Integrity and Major Frauds Unit to cease cryptocurrency enforcement entirely, redirecting resources to immigration and procurement fraud
The Market Response
When Blanche issued his April 2025 memo while still holding between 159,000 and 485,000 in cryptocurrency investments (including Bitcoin, Ethereum, Solana, and Cardano), the market reacted favorably—crypto trading spiked immediately . Though his personal crypto holdings while issuing the memo raised conflict-of-interest concerns and prompted a Senate inquiry , the policy direction was unmistakable.
And when pressure comes off, innovation and capital usually step in.
What Comes Next
With Blanche now leading the DOJ as Acting Attorney General, the crypto industry faces a regulatory environment more favorable than at any point in recent years. The administration has made clear its goal to make the U.S. "the crypto capital of the world," and Blanche's elevation puts the author of that vision in direct control of federal criminal enforcement .
We are starting to see the foundation being laid for the next phase of growth.
Civic Watch Media | Truth. Accountability. Public Interest.
