Cryptocurrency Enforcement Under Pressure: The Significance of Conflicts of Interest in DOJ Policy

rekt_but_not_broke · 2026-02-13T00:09:51+00:00

The increasing political control over cryptocurrencies raises concerns about ethical standards and conflicts of interest, especially regarding Deputy Attorney General Todd Blanche, who owned significant digital assets while limiting enforcement actions. This situation highlights the need for transparency and integrity in policymaking and the importance of congressional oversight in maintaining accountability.

rekt_but_not_broke

2026-02-13 00:09:51

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Political control over cryptocurrencies is increasingly becoming a battleground for debates about ethical standards and personal conflicts of interest. Concerning questions about the importance of integrity within the Department of Justice have arisen after high-ranking officials made decisions to weaken enforcement measures while holding significant digital assets themselves.

Allegations Against Deputy Attorney General Todd Blanche

In January 2025, Todd Blanche, the Deputy Attorney General of the United States, disclosed cryptocurrency holdings valued between $158,000 and $470,000, primarily in Bitcoin and Ethereum. A few months later, in April 2025, Blanche signed a memorandum that significantly limited the Department of Justice’s enforcement activities in the cryptocurrency sector. These events raise questions about potential conflicts of interest, as addressed in Title 18, Section 208(a) of the U.S. Code—a law requiring officials to recuse themselves from matters where they have a financial interest.

Timeline of Questionable Decisions

Timing is crucial to understanding the allegations. Blanche remained engaged with his assets until late May or early June 2025, long after issuing his enforcement memorandum. This raises the question of whether proper ethics reviews were conducted for these decisions. U.S. lawmakers have therefore sent a letter demanding documentation of communication protocols, ethical reviews, and a full account of the approval processes. Blanche’s response deadline was February 11, 2026.

Why Congressional Oversight Matters

The congressional investigation emphasizes a fundamental principle of governance: the need for public officials to act free from personal conflicts of interest. Lawmakers argue that monitoring DOJ personnel decisions and the underlying policy formulation is a vital part of their constitutional oversight responsibilities. This underscores the overarching importance of transparency and integrity in developing cryptocurrency regulations.

The issue extends beyond individual persons: it touches on the credibility of agency decisions in the strategic area of digital assets and the ability of Congress to fulfill its oversight role.

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