US lawmakers questioned Deputy Attorney General Todd Blanche about his decision to dissolve the National Cryptocurrency Enforcement Team (NCET) and drastically reduce law enforcement regarding cryptocurrencies while he still holds significant amounts of cryptocurrency, potentially violating conflict of interest regulations under 18 USC 208(a).
The parliamentary inquiry outlines the timeline for Blanche's asset disclosure, the issuance of the Mnemonics to reduce enforcement, and the date he finally withdrew from the process. MPs are demanding an explanation for his failure to withdraw from the decision-making process and the provision of relevant documents before the February 11, 2026 deadline.
- Congress suspects a conflict of interest in dissolving NCET and reducing cryptocurrency enforcement.
- Blanche once held $158,000–$470,000 in cryptocurrencies, primarily Bitcoin and Ethereum.
- Applicants are required to submit their applications and answer 7 questions before February 11, 2026.
Congress demands Blanche explain the conflict of interest.
Several members of the U.S. Congress have sent letters to Deputy Attorney General Todd Blanche, seriously questioning the dissolution of NCET and the overall reduction of cryptocurrency-related enforcement efforts given his significant holdings of Cryptoasset .
The letter stated that this decision may violate Section 208(a) of Title 18 of the U.S. Code on conflicts of interest. The focus was on Blanche's involvement in the decision-making process while having a financial interest in the cryptocurrency market, thereby raising questions about the objectivity of the law enforcement policy.
Lawmakers stressed that law enforcement against cryptocurrency-related crimes is crucial, and said the questioning was a form of parliamentary oversight of the Justice Department's personnel and policy decisions.
Property timeline and document requirements
According to the letter, in January 2025 Blanche announced he held $158,000–$470,000 in cryptocurrencies, primarily Bitcoin and Ethereum; by April 2025, he issued a Mnemonics narrowing the Justice Department’s cryptocurrency enforcement actions.
The letter stated that his assets would not be fully divested until the end of May or the beginning of June of the same year. Therefore, the MPs requested that he explain why he did not withdraw himself from the decision-making process and clarify the specific basis for the Justice Department's earlier statement that the matter had been properly flagged, processed, and approved.
The letter requests that the Deputy Minister of Justice provide contact records, ethics review documents, and responses to seven specific questions by February 11, 2026.
