Acting US Attorney General Todd Blanche said federal authorities will no longer pursue blockchain developers unless they knowingly assist third parties in committing crimes. The remarks indicate a significant shift in how the Department of Justice and FBI intend to approach enforcement in the crypto sector, with greater emphasis now placed on users who engage in illicit conduct rather than the creators of the software itself.
Speaking at a Bitcoin conference in Las Vegas with FBI Director Kash Patel and Coinbase chief legal officer Paul Grewal, Blanche said the Trump administration has changed the government’s posture on digital asset-related investigations. He said developers who are not involved in illicit activity and are not knowingly helping criminal actors should not expect to be investigated or charged.
The comments represent a notable departure from earlier actions taken against crypto privacy tools and mixers, including Tornado Cash. That platform was sanctioned in 2022 over allegations that it facilitated money laundering and sanctions evasion, before the sanctions were lifted in 2024. Its developers were later charged, with one convicted in 2025 and another defendant still at large.
Within the crypto industry, Blanche’s remarks were broadly welcomed, though some observers said the guidance still leaves important legal questions unresolved. The central issue remains where authorities will draw the line between publishing noncustodial software and actively helping users who later misuse it. Critics argue that developers still lack sufficient clarity on how federal prosecutors will interpret that distinction.
The debate has been building for more than a year. In April 2025, Blanche issued a memo outlining a broader move away from what he described as regulation through prosecution. That guidance signaled that developers should not be targeted for the conduct of platform users or for unintentional regulatory violations.
Blanche said the administration does not want technology builders to view the DOJ or FBI as a source of unnecessary legal risk. For the crypto industry, the message suggests a more permissive enforcement environment, but questions remain over how consistently that approach will be applied in practice.Republican Senator Thom Tillis has emerged as a critical swing vote in the Senate’s effort to advance a crypto market structure bill, saying he will oppose the measure unless it includes ethics restrictions on how White House officials can engage with digital assets. The North Carolina Republican, who is retiring early next year, said the bill needs ethics language before it can move forward.
His stance gives additional leverage to Democrats who have been pressing for tighter rules around the Trump family’s growing crypto interests. Senate Democrats have argued that the legislation should address potential conflicts of interest linked to the president and other federal officials. Senator Ruben Gallego said there will be no final bill unless both parties agree on the ethics issue.
The legislation would divide oversight of the crypto market between the Commodity Futures Trading Commission and the Securities and Exchange Commission. It has already faced repeated delays as lawmakers and industry lobbyists debate several unresolved issues, including ethics restrictions and the treatment of stablecoin yield payments.
The House approved its version of the bill, known as the CLARITY Act, in July, but the Senate process has moved more slowly. Tillis, a senior member of the Senate Banking Committee, is positioned to play an important role in determining whether the measure can clear the chamber.
Talks among lawmakers are continuing, and some senators say they are making progress on the ethics language, although no final wording has been agreed. Senator Adam Schiff said negotiations have recently become more focused as the broader bill begins to come together.
Earlier this year, Schiff said Democrats want a broad ban preventing federal employees from sponsoring, endorsing or issuing digital assets. That approach would apply to the president as well, reflecting concerns over the president’s ties to a memecoin and non-fungible tokens that use his name and image.
