President Trump fired Attorney General Pam Bondi on April 2, 2026, and named Deputy Attorney General Todd Blanche as her acting replacement. Blanche is the same official who, in April 2025, signed the memo that disbanded the Department of Justice’s National Cryptocurrency Enforcement Team and ordered prosecutors to stop pursuing regulatory cases against crypto companies. He did so while holding between $159,000 and $485,000 in digital assets, according to financial disclosures reviewed by ProPublica.
Key takeaways
- Todd Blanche became acting attorney general on April 2 after Trump fired Pam Bondi over frustration with her handling of the Epstein files and political prosecutions.
- In April 2025, Blanche signed a memo titled “Ending Regulation by Prosecution” that dissolved the National Cryptocurrency Enforcement Team and halted Biden-era crypto investigations.
- The Campaign Legal Center filed a formal complaint alleging Blanche violated federal conflict-of-interest law by issuing that memo while holding Bitcoin, Ethereum, Solana, and Coinbase stock.
- His appointment signals continued lighter-touch crypto enforcement, though his tenure may be temporary as EPA Administrator Lee Zeldin is reportedly the leading candidate for permanent AG.
Published: April 4, 2026 5:00 AM UTC
Why Bondi was removed and what Blanche inherits
Blanche’s promotion was not planned as a crypto policy move. Trump removed Bondi after growing frustrated with the pace of political prosecutions and what he viewed as mishandling of the Jeffrey Epstein files, according to CNN and ABC News. The Justice Department confirmed Blanche will lead the agency while Trump weighs permanent replacements. EPA Administrator Lee Zeldin is considered the frontrunner for the full appointment.
But the crypto implications are real. Blanche authored the single most consequential DOJ policy change for the digital asset industry since Trump took office in January 2025. As acting AG, he now controls the department that enforces federal law across securities fraud, money laundering, and sanctions violations touching crypto markets.
The memo that reshaped crypto enforcement
On April 7, 2025, roughly a month after his Senate confirmation as deputy AG, Blanche released a four-page memo titled “Ending Regulation by Prosecution.” The document ordered three changes: dissolve the National Cryptocurrency Enforcement Team created under Biden, halt ongoing investigations into crypto exchanges and dealers, and redirect DOJ resources toward the administration’s crypto working group.
Blanche called the previous enforcement approach “a reckless strategy of regulation by prosecution.” The disbanded NCET had a track record that included convicting an individual in a $110 million fraud scheme, securing a guilty plea from a Russian operator who processed $700 million in illicit transactions, and assisting the investigation of Binance that resulted in founder Changpeng Zhao’s guilty plea, a four-month prison sentence, and a $4.3 billion penalty.
Not all prosecutors followed the memo. The Do Kwon and Samourai Wallet cases both proceeded to guilty pleas after it was issued, suggesting the memo’s practical limits when cases were already well advanced.
The conflict-of-interest question
Blanche signed the enforcement memo while personally invested in the assets it protected. His disclosure forms showed holdings of $100,000 to $250,000 in Bitcoin, plus positions in Ethereum, Solana, Cardano, Polygon, Polkadot, and Coinbase stock. His ethics agreement required him to divest within 90 days of his March 5, 2025 Senate confirmation. The memo came 33 days into that window.
He eventually divested in late May and early June 2025 by transferring holdings to adult children and a grandchild rather than selling them on the open market. The Campaign Legal Center estimated his Bitcoin alone rose approximately 34% between the memo’s issuance and his divestment. In January 2026, the watchdog group filed a formal complaint with the DOJ inspector general, calling the conduct a “blatant” violation of 18 U.S.C. § 208, the federal conflict-of-interest statute.
Six Democratic senators, including Elizabeth Warren and Dick Durbin, sent a letter demanding Blanche produce all communications with ethics officials and the crypto industry related to the decision. The DOJ responded that the matter “was appropriately flagged, addressed, and cleared in advance.”
What this means for the crypto industry
Blanche’s elevation from deputy to acting attorney general does not change DOJ crypto policy on paper. The enforcement memo remains in effect. But it concentrates authority in someone who has already demonstrated willingness to pull back federal oversight of digital assets at a time when the SEC and CFTC have issued their own joint interpretive release clarifying token classifications.
The practical effect depends on how long Blanche holds the role. If Trump moves quickly to install Zeldin or another permanent AG, the impact may be limited to continuity. If the appointment stretches into months, Blanche will shape enforcement priorities across every federal case touching digital assets, from fraud and money laundering to sanctions evasion.
The Trump administration has now placed officials with combined crypto holdings of $175 million to $340 million across at least 216 political appointments, according to ProPublica’s analysis. SEC Chair Paul Atkins held stakes up to $6 million in crypto-related businesses before confirmation. Commerce Secretary Howard Lutnick formerly ran Cantor Fitzgerald, which managed billions in crypto investments and served as the primary banker for Tether.
Frequently asked questions
Why did Trump fire Pam Bondi as attorney general?
Trump removed Bondi on April 2, 2026, citing dissatisfaction with her handling of the Jeffrey Epstein files and the pace of political prosecutions. Multiple news outlets reported the president had grown frustrated that high-profile cases against his political opponents had failed in court.
What crypto assets did Todd Blanche hold when he issued the enforcement memo?
Financial disclosures showed Blanche held between $159,000 and $485,000 in crypto, including $100,000 to $250,000 in Bitcoin, plus Ethereum, Solana, Cardano, Polygon, Polkadot, and Coinbase stock. He divested by transferring assets to family members in May and June 2025.
Does Blanche’s appointment change DOJ crypto enforcement policy?
Not immediately. His April 2025 memo disbanding the National Cryptocurrency Enforcement Team and halting crypto company investigations remains in effect. His elevation to acting AG concentrates enforcement authority in the person who wrote that policy, but the practical impact depends on how long he holds the role.
