U.S. lawmakers question Blanche over DOJ crypto enforcement rollback

In a January 28, 2026 letter, the lawmakers said Blanche’s actions may implicate 18 U.S.C. § 208(a), which generally bars executive-branch employees from participating “personally and substantially” in matters where they have a financial interest. They asked Blanche to preserve relevant documents and to provide records and written determinations related to ethics review, including whether he received a formal waiver under 18 U.S.C. § 208(b)(1) before issuing the memo.

The senators laid out a timeline that they said raises questions about compliance with Blanche’s ethics commitments. They wrote that Blanche disclosed between $158,000 and $470,000 in crypto holdings on January 18, 2025, agreed on February 10, 2025 to divest “as soon as practicable,” was confirmed on March 5, 2025, then issued the April 7, 2025 memo before his reported sales or transfers began between May 31 and June 3, 2025.

Aforementioned letter also argues that the policy shift had public-safety implications. The senators said DOJ’s earlier response to their April 2025 oversight inquiry promised a focus on criminals using crypto, but they pointed to external research estimating illicit cryptocurrency activity rose 162% in 2025, and they cited growth in flows tied to sanctioned entities alongside other categories of crypto crime.

The renewed scrutiny follows a January 22, 2026 complaint filed by the Campaign Legal Center with DOJ’s Office of the Inspector General, seeking an investigation into whether Blanche participated in “particular matters” affecting his financial interests. The complaint asks the OIG to determine whether a criminal conflict-of-interest violation occurred under 18 U.S.C. § 208 and says the public record warrants fact-finding.

In the complaint, the group argues Blanche’s April 2025 memo changing digital-asset prosecution guidelines amounted to a decision focused on an identifiable industry and therefore could qualify as a “particular matter” under conflict-of-interest standards. It also lists a range of digital assets the group says appeared in Blanche’s disclosures, alongside claims about the timing of divestment.

The senators requested answers and production of materials “as soon as possible and no later than February 11, 2026,” including details around internal ethics flagging and any communications with crypto-industry representatives in the period between Blanche’s confirmation and the April 2025 memo.