Senators demand answers over DOJ crypto unit shutdown

Senators question DOJ's crypto unit shutdown, citing Blanche's holdings and rising illicit activity. Lawmakers seek transparency and urge a policy reversal.

U.S. lawmakers, including six senators, have raised concerns about Deputy Attorney General Todd Blanche's decision to dissolve the Department of Justice's National Cryptocurrency Enforcement Team (NCET) in April 2025. They question whether Blanche's significant personal cryptocurrency holdings—mainly Bitcoin and Ethereum, valued between $158,000 and $470,000—present a conflict of interest in reducing DOJ crypto enforcement efforts. Citing federal ethics regulations and a 162% surge in illicit crypto activity in 2025, lawmakers argue for maintaining robust enforcement. They have requested that Blanche submit communication records, ethics review documents, and responses to specific questions by February 11, 2026. The senators warn that disbanding the NCET could fuel illegal crypto activities. They emphasize the importance of congressional oversight and urge a reconsideration of the decision to address the growing threat of crypto-related crime.