Senator blasts pick for DOJ crypto cuts, CZ pardon
A US senator blasts pick for dismantling the Justice Department’s crypto enforcement unit and for President Donald Trump’s pardon of former Binance CEO Changpeng Zhao, as acting Attorney General Todd Blanche faced Senate Judiciary Committee scrutiny at his confirmation hearing Wednesday.
Key Takeaways
- Sen. Dick Durbin accused Blanche of “dismantling” DOJ’s crypto enforcement team and shutting down related criminal investigations.
- Blanche was reportedly behind disbanding the Justice Department’s crypto unit in April 2025 as deputy attorney general.
- Durbin tied that move—and Trump’s CZ pardon—to Trump family crypto ties, including World Liberty Financial.
- Republican Sen. Thom Tillis said he was “concerned” about the Binance CEO pardon; Blanche said he would review the pardon process if confirmed.
- Blanche has also signaled a DOJ pivot away from charging blockchain developers who are not knowingly aiding illicit activity.
The clash unfolded as Trump’s former personal attorney—and current acting AG—appeared before the Senate Judiciary Committee on his nomination to permanently lead the department. For more US digital-asset policy coverage, see BlasterPost’s Fintech & Crypto Alerts.
Why did a senator blast Blanche over crypto?
Ranking Democrat Sen. Dick Durbin used part of his opening statement to criticize Trump’s AG pick for what he described as “dismantling DoJ’s enforcement team and shutting down ongoing criminal investigations of the crypto industry.”
According to Cointelegraph’s report on the hearing, Blanche was reportedly behind the unit’s disbanding in April 2025 while serving as deputy attorney general.
Durbin argued that order helped Trump “earn $1.4 billion from his ties” to the industry, including his family’s World Liberty Financial business. He also accused former Binance CEO Changpeng “CZ” Zhao of “broker[ing] a deal to channel $2 billion” into World Liberty, which Durbin said led to a presidential pardon.
Zhao agreed in 2023 to plead guilty to one felony charge related to Anti-Money Laundering controls at the exchange. “Every smarmy, suspect deal in this administration has cryptocurrency behind the curtain,” Durbin said.
What did Blanche and senators say on the CZ pardon?
Blanche also faced crypto questions from Republican Sen. Thom Tillis, who said he was “concerned that the Binance CEO got pardoned.” Blanche said he would review the pardon process if confirmed as attorney general.
The nominee has previously framed DOJ crypto policy as ending “regulation by prosecution.” A 2025 memo associated with him took that approach, and he previously held at least $159,000 in digital asset-related investments before divesting them to his children and grandchildren.
As acting AG since Pamela Bondi’s firing in April, Blanche told crypto holders the department would not pursue blockchain developers who were not responsible for illicit activity on platforms. At the Bitcoin 2026 conference, he said coders who are not knowing third-party helpers in crimes “are not going to be investigated and not going to be charged.”
DOJ still has cases against developers tied to platforms allegedly used for illegal activity, including an expected retrial of Tornado Cash co-founder Roman Storm later this year after a 2025 jury mixed verdict.
How close is Blanche to Senate confirmation?
Senate Republicans need a simple majority of lawmakers present to confirm Blanche if the nomination advances from the judiciary panel. With Sen. Mitch McConnell still hospitalized after a fall that led to pneumonia, Republicans hold a slim 52-47 margin, Cointelegraph reported.
Blanche already faces pushback over immigration enforcement, DOJ crypto policy, claims he would facilitate Trump’s attacks on perceived enemies, and handling of the Jeffrey Epstein files—making Durbin’s crypto critique one flashpoint among several.