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Six Democratic US Senators—Mazie Hirono, Elizabeth Warren, Richard Durbin, Sheldon Whitehouse, Christopher Coons, and Richard Blumenthal—publicly slammed the Department of Justice (DOJ) on January 28, 2026, over the 2025 disbandment of its National Cryptocurrency Enforcement Team (NCET). In a letter to Deputy Attorney General Todd Blanche, they alleged conflicts of interest, noting he held cryptocurrency valued at $158,000–$470,000 (primarily Bitcoin and Ethereum) when he issued an April 2025 memo dissolving the unit and narrowing crypto probes.
The NCET, launched in 2021, targeted fraud, money laundering, and illicit finance via digital assets, securing convictions like Binance’s. Blanche’s directive shifted enforcement to focus solely on bad actors (e.g., terrorists, drug traffickers) using crypto, not platforms/exchanges—criticized as enabling criminals amid reports of surging illicit activity ($158B volume in 2025, sharp rises in sanctioned entity use).
Senators argued the move weakened oversight in a growing market, potentially violating federal ethics law (18 U.S.C. § 208(a)) by allowing personal financial interests to influence decisions. They urged recusal/divestment compliance and reversal, calling it a “serious mistake” that hampers accountability.
The crypto community and analysts expressed concerns over regulatory uncertainty, reduced scam/fraud deterrence, and mixed signals to investors/criminals. A watchdog complaint prompted DOJ Office of Inspector General scrutiny.
The DOJ has framed the change as streamlining under broader restructuring and Trump-era policy to avoid “regulation by prosecution.” Congressional hearings or further oversight may follow, with lawmakers pushing for stronger crypto rules and transparency.
This debate underscores tensions between crypto innovation, enforcement needs, and integrity in federal agencies amid digital assets’ expansion.
