Catenaa, Wednesday, April 08, 2026- President Donald Trump appointed Todd Blanche as interim attorney general Thursday, replacing Pam Bondi. Blanche, who authored last year’s DOJ memo limiting cryptocurrency prosecutions, now leads the department, signaling a continued pullback from federal enforcement of regulatory violations in the crypto sector.
Blanche drafted the DOJ’s April 2025 memo that disbanded the National Cryptocurrency Enforcement Team, narrowing prosecutorial focus to fraud and criminal acts rather than regulatory non-compliance. That policy had already influenced active cases, including the Southern District of New York prosecution of Tornado Cash developer Roman Storm, where one charge was dropped citing the memo. The memo’s directives remain intact under Blanche’s leadership, giving the industry clarity on federal priorities after months of uncertainty.
Crypto firms and DeFi platforms that had faced scrutiny under the Biden-era framework now anticipate lighter enforcement. Offshore exchanges and unhosted wallets are likely to see fewer federal challenges. While states continue independent oversight, the memo’s survival at the top of DOJ reduces the risk of abrupt federal enforcement swings. Blanche’s move comes amid broader legislative uncertainty, with FIT21 and the GENIUS Act still pending congressional action.
The interim appointment effectively reinforces the DOJ’s de-escalated stance on crypto regulation. DeFi protocols, mixing services, and OTC platforms benefit from a continued enforcement truce, while companies weighing federal licensing or compliance investments gain operational confidence. Prosecutorial discretion will remain narrow, and regulatory cases that were paused or dismissed under the memo are unlikely to resume in the short term.
Blanche’s prior ethics disclosures, noting crypto holdings between $159,000 and $485,000 at the time he signed the memo, highlight potential conflicts, though assets were later transferred to family members. Confirmation for a permanent AG could hinge on resolving these issues. Meanwhile, industry participants are monitoring how federal restraint interacts with state-level rules, which are increasingly active in licensing and compliance oversight.
Analysts characterize Blanche’s rise as a “policy continuity appointment.” Legal experts suggest the memo’s framework will remain enforceable, protecting the crypto sector from aggressive federal actions. Compliance specialists expect fewer prosecutions targeting unhosted wallets and DeFi liquidity protocols, though fraud cases remain a priority. Some observers caution that Blanche’s ethics exposure could provoke confirmation scrutiny, potentially limiting his ability to enact new initiatives. Market watchers note that exchanges may accelerate U.S. expansion under a predictable enforcement climate, while speculative projects may temporarily relax internal compliance intensity.
Blanche, Trump’s former personal defense attorney, was confirmed deputy attorney general in March 2025. His memo, drafted weeks later, effectively dismantled the DOJ’s dedicated crypto enforcement infrastructure. The National Cryptocurrency Enforcement Team, formed in 2022, had been central to prosecuting regulatory violations across digital asset markets. Blanche’s interim AG tenure preserves the enforcement philosophy he authored, bridging the transition from Bondi while broader crypto legislation remains in flux.
The Tornado Cash case illustrates the memo’s reach: prosecutors dropped one regulatory charge against developer Roman Storm, reinforcing the memo’s policy in practice. Blanche’s tenure coincides with unresolved federal legislation, including the FIT21 and GENIUS Act frameworks. These bills would codify market structure rules and stablecoin oversight, potentially limiting state-federal divergence, but until passage, federal discretion remains narrow. The crypto community views Blanche’s appointment as favorable for innovation, stability, and reduced enforcement risk.
Blanche’s interim role is expected to last several months, with a permanent nomination uncertain. Crypto firms, DeFi protocols, and offshore platforms will continue evaluating operational strategies under the new enforcement landscape. The sector remains attentive to legislative progress, ethical questions around Blanche’s prior holdings, and potential Senate pushback on a permanent confirmation.
