Todd Blanche is now the interim head of the Department of Justice, and the crypto industry is paying attention for a specific reason that has nothing to do with his biography.
President Trump announced Thursday that Blanche, previously serving as deputy attorney general, would replace Pam Bondi as Attorney General. The real headline: the man who authored the DOJ’s crypto enforcement memo now controls the institution that executes it.
Blanche signed the four-page directive in April 2025 that disbanded the DOJ’s National Cryptocurrency Enforcement Team and instructed prosecutors to stand down from regulatory-violation cases against the crypto industry. That document has already reshaped at least one active prosecution. Its author now runs the department.
Key Takeaways:
- Who He Is: Todd Blanche, Trump’s former personal criminal defense attorney, was confirmed as deputy attorney general in March 2025 and is now interim AG following Pam Bondi’s removal.
- What the Memo Did: Blanche’s April 2025 DOJ memo disbanded the National Cryptocurrency Enforcement Team and barred prosecutors from pursuing regulatory violation cases against crypto firms.
- Ethics Exposure: A ProPublica investigation found Blanche held between $159,000 and $485,000 in crypto assets – including BTC, ETH, SOL, and ADA – when he signed the enforcement memo, potentially violating his divestiture pledge.
- Enforcement Scope: The memo’s reach has already been tested in the Southern District of New York’s case against Tornado Cash developer Roman Storm, where one charge was dropped after prosecutors cited it.
- DeFi Regulation Impact: With Blanche now at the top, enforcement posture on DeFi protocols, mixing services, and unhosted wallets is unlikely to harden in the near term.
- What to Watch: Whether Blanche pursues permanent nomination and how his interim tenure intersects with ongoing federal legislative debates – including FIT21 and the GENIUS Act – will determine how durable this enforcement reset actually is.
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What the DOJ Crypto Enforcement Memo Actually Does – and Why Todd Blanche Authorship Changes the Calculus
The memo Blanche signed last April did two things simultaneously: it eliminated the DOJ’s dedicated crypto prosecution unit and it narrowed the prosecutorial mandate to fraud and clear criminal conduct, pulling back from the Biden-era framework that treated regulatory non-compliance as a criminal predicate.
The National Cryptocurrency Enforcement Team, formed in 2022, had been the institutional infrastructure for that broader approach.
The document’s downstream effects were immediate. In the SDNY’s case against Tornado Cash developer Roman Storm, prosecutors referenced the DOJ memo before dropping one charge against Storm – a direct application of the new enforcement philosophy to an active DeFi regulation case.
Storm was later convicted on a separate charge and faces retrial on two more, but the memo’s influence on prosecutorial discretion is already on the record.
Blanche’s elevation to interim Attorney General doesn’t change the memo’s text. It does remove any institutional uncertainty about whether it would survive a leadership transition. The man who wrote the policy now sets DOJ priorities at the highest level.
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Blanche as Interim AG – What Shifts for DeFi, Mixing Services, and Offshore Platforms
The immediate enforcement implication is continuity, not escalation. DOJ under Blanche is unlikely to reopen the regulatory-violation runway the memo closed. That matters most for DeFi protocols operating under uncertain legal status and for mixing services that had been in the crosshairs of the prior enforcement framework.
What’s less settled is the ethics exposure Blanche carries into the role. ProPublica reported that Blanche held crypto assets worth between $159,000 and $485,000 at the time he signed the enforcement memo – a potential violation of his divestiture pledge.
His most recent government ethics disclosure shows he subsequently transferred holdings in Bitcoin, Solana, ADA, Ethereum, Polygon, DOT, and Quant to his children and grandchild. That timeline is now a liability, not a footnote.
For exchanges navigating jurisdiction-specific compliance – the kind of localized licensing pressure seen as platforms push into regulated U.S. markets – the Blanche appointment signals that federal enforcement will remain restrained even as state-level regulators operate independently. The divergence between federal pullback and active state enforcement is the tension that defines this moment.
CBS News reported expectations of a prolonged interim tenure, citing Senate confirmation challenges for a permanent AG. Trump praised Blanche on Truth Social as “a very talented and respected legal mind”; Blanche responded on X: “Thank you for the trust and the opportunity to serve.”
With FIT21 and broader crypto market structure legislation still unresolved in the Senate, the durability of Blanche’s enforcement reset depends heavily on whether Congress codifies the regulatory boundaries the memo only sketched – and whether his ethics exposure becomes a confirmation obstacle before that happens.
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