President Donald Trump has appointed Todd Blanche as the interim Attorney General, a move that could influence the regulatory landscape for the cryptocurrency industry. Blanche, who previously served as deputy attorney general, authored a memo directing prosecutors to avoid pursuing regulatory violation cases in the crypto sector. This directive was notably referenced in the Southern District of New York's case against Tornado Cash developer Roman Storm, where the office eventually dropped a charge against Storm, though he was later convicted on another matter and faces a retrial on two additional charges this year. Blanche's recent government ethics disclosure, dated July 10, 2025, revealed that he transferred his crypto holdings to his children and a grandchild, including Bitcoin (BTC), Solana (SOL), Ethereum (ETH), and other assets. His disclosure form also indicated he held Polygon (MATIC), DOT, and Quant (QNT), as well as Coinbase (COIN) stock. However, ProPublica reported that he still held these cryptocurrencies, valued between $159,000 and $485,000, when he signed the enforcement memo, which raised ethical concerns and contradicted his pledge to divest prior to handling crypto-related matters. The appointment of Blanche, who previously disbanded the DOJ's National Cryptocurrency Enforcement Team established under former President Joe Biden, signals a potential shift in the DOJ's approach to crypto enforcement. This change may lead to increased volatility in crypto markets and regulatory scrutiny, affecting both digital assets and related financial stocks. The crypto industry and investors are closely watching how this leadership change will shape future enforcement actions and policy decisions.
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