US DOJ dey under fire for how dem dey chase crypto cases as tori say Blanche get conflict of interest don show
Six Democratic U.S. senators dey accuse Deputy Attorney General Todd Blanche say e get clear conflict of interest after ProPublica report sey e hold crypto while e sign DOJ memo wey scatter National Cryptocurrency Enforcement Team (NCET). The senators talk sey Blanche get BTC, ETH, and SOL and sey e push make dem reduce crypto enforcement through one memo wey dem call “Ending Regulation by Prosecution.”
Dem dey argue sey the conflict worse because Blanche sign one ethics agreement for Feb 2025 to divest inside 90 days and no join any matter wey fit affect im digital-asset interests. ProPublica talk sey the DOJ enforcement rollback memo come out for Apr 2025—before divestment finish. Report say the portfolio rise during the window, with BTC gains estimated about +34% (around $105,000). Later, Blanche shift the holdings to adult children and one grandchild instead of full liquidation, wey ethics experts dey say fit technically follow rules but e dey against the spirit of recusal rules.
The senators also point to one Chainalysis report for Jan 2026 wey say illicit crypto activity rise +162% year over year, and dem argue sey the rollback get negative consequences. Dem dey demand internal ethics-review communications and records about crypto contacts and the memo. DOJ talk sey the matters been flagged, handled, and cleared well but dem no give details. For traders, this controversy fit sway sentiment between the “regulatory relief” storyline and renewed compliance scrutiny, adding headline risk to spot BTC, ETH, and SOL.
Neutral
Even though di allegation dem de target DOJ internal decision-making and no direct change crypto laws, di dispute fit quick affect market sentiment. For short term, “regulatory rollback” headlines fit support risk-on trading for BTC, ETH, and SOL, but di ethics and conflict-of-interest side raise di chance for follow-up scrutiny, hearings, or enforcement-policy reversals—wey fit shift sentiment back to compliance pressure. For long term, di outcome go depend on wetin investigators and courts conclude, so price impact likely go be headline-driven and two-sided rather than one-directional. Since di story mainly add governance and regulatory uncertainty without immediate, clearly enforceable new rule, di net expected effect on di mentioned coins na neutral.