DOJ's New Crypto Prosecution Policy Under Deputy Attorney General Todd Blanche
A four-page memo signed by Deputy Attorney General Todd Blanche directs the U.S. Department of Justice (DOJ) to exercise more discretion in prosecuting cryptocurrency cases. The memo advises the DOJ to halt cases that impose regulatory frameworks on digital assets until regulators develop new rules, signaling a potential shift in the DOJ's approach to crypto enforcement.
The crypto industry has generally praised the memo but expressed concerns that it might lead to leniency on fraud or other criminal activities. Officials clarified that the memo does not apply to clearly fraudulent actions, and the DOJ intends to wait for regulatory clarity from the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC) before proceeding with cases. After the memo's publication, attorneys noted in April that the DOJ would not ease prosecutions related to fraud and would defer guidance on whether assets qualify as securities or commodities to the SEC and CFTC rather than applying the memo retroactively.
Despite the memo’s existence, prosecutors have largely indicated it has not affected ongoing cases, making its practical impact difficult to assess. Notable recent cases include Samourai Wallet developers Keonne Rodriguez and William Lonergan Hill, who pled guilty to conspiracy and received sentences of five and four years, respectively. Terraform Labs founder Do Kwon pleaded guilty to conspiracy and wire fraud and was sentenced to 15 years. Roman Storm, a Tornado Cash developer, had one charge dropped but was still convicted of conspiracy to operate an unlicensed money transmitter and awaits sentencing.
The memo reflects a broader crypto-friendly stance under President Trump compared to the Biden administration and highlights the evolving landscape of cryptocurrency regulation and enforcement. This article is part of CoinDesk's Most Influential 2025 list.
