Short Description:
An ethics complaint alleges Trump’s former attorney, now Deputy AG Todd Blanche, may have broken conflict-of-interest laws by issuing a crypto-friendly DOJ policy while holding crypto assets.
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Main Article:
A prominent government ethics watchdog, the Campaign Legal Center, has formally requested a Justice Department investigation into Deputy Attorney General Todd Blanche. The complaint centers on whether Blanche violated federal conflict-of-interest laws by shaping Department of Justice (DOJ) cryptocurrency prosecution policy while personally holding a significant crypto investment portfolio. This topical issue sits at the volatile intersection of government ethics, cryptocurrency regulation, and political accountability.
According to a ProPublica report, Blanche owned at least $159,000 in crypto assets, including Bitcoin and Solana, when he issued an April memo dramatically altering the DOJ’s stance. His order disbanded a dedicated crypto enforcement team and halted investigations into crypto companies initiated under the Biden administration. Critics argue this directly benefited the broader cryptocurrency industry, potentially including his own holdings. Blanche had signed an ethics pledge to divest his crypto within 90 days of his March confirmation and to recuse himself from related matters until doing so. However, records show he transferred his assets to family members over a month after issuing the influential policy memo.
The federal conflict-of-interest statute prohibits officials from participating in matters that could financially benefit them or their immediate families. The complaint alleges Blanche’s actions may have triggered these provisions, noting his Bitcoin holdings reportedly appreciated by 34% between his memo and eventual divestment. The DOJ has defended Blanche, stating the matter was “appropriately flagged, addressed, and cleared in advance,” dismissing the complaint as a “baseless character assassination.” As the Trump administration continues to push a pro-innovation stance on digital assets, this ethics scrutiny underscores the challenges of regulating a rapidly evolving financial sector while maintaining public trust in impartial governance.
Short Summary:
An ethics watchdog has called for a DOJ probe into Deputy AG Todd Blanche, alleging he violated conflict-of-interest laws by enacting crypto-friendly policies while holding personal cryptocurrency investments. The complaint highlights tensions between cryptocurrency regulation and government ethics, questioning whether the policy shift served the public interest or personal financial benefit. The DOJ has denied any wrongdoing.
