Acting U.S. Attorney General Todd Blanche faced sharp criticism during his Senate Judiciary Committee confirmation hearing on Wednesday, as lawmakers questioned whether the Justice Department’s approach to crypto enforcement is weakening and favoring President Donald Trump’s network.

Ranking member Sen. Dick Durbin said Blanche’s tenure has included actions that, in his view, dismantled the department’s capacity to pursue crypto-related crime, pointing in particular to a reported move that disbanded a DOJ crypto enforcement unit in April 2025. The hearing also featured questions about Binance CEO Changpeng “CZ” Zhao’s pardon and whether DOJ will revisit how such clemency decisions were reached.

Key takeaways

• Sen. Dick Durbin accused Blanche of dismantling DOJ crypto enforcement and closing out investigations tied to the industry.
• Durbin tied the alleged DOJ shift to potential conflicts of interest, including claims involving Trump and family business World Liberty Financial.
• Blanche said DOJ would not investigate or charge blockchain developers who are not third-party users and are not knowingly aiding illicit activity.
• Republican Sen. Thom Tillis pressed Blanche on whether CZ Zhao’s pardon raises concerns; Blanche said he would review the pardon process if confirmed.
• With Mitch McConnell hospitalized, Senate Republicans hold a narrow 52–47 margin to confirm Blanche if the nomination advances.

Durbin’s critique centers on enforcement capacity and investigations

Durbin’s comments focused on Blanche’s role in reshaping DOJ’s posture toward crypto enforcement. At the hearing, he criticized what he described as Blanche “dismantling” enforcement teams and shutting down ongoing criminal investigations involving the crypto sector.

Durbin’s argument referenced reporting that Blanche was behind the reported disbanding of DOJ’s crypto enforcement unit in April 2025, when he was deputy attorney general. The accusation aligns with earlier coverage noting that the unit was effectively dismantled through a memo distributed within DOJ. According to Fortune’s reporting on the development, the disbanding occurred as part of a broader internal restructuring.

Durbin also raised a conflict-of-interest allegation, saying that the actions he described would enable Trump to benefit financially from ties to the crypto industry. He pointed to Trump’s family’s business, World Liberty Financial, and argued that Blanche’s policies would protect that ecosystem from aggressive enforcement.

In addition, Durbin accused CZ Zhao of “broker[ing] a deal to channel $2 billion” into World Liberty, which he said resulted in a presidential pardon. The hearing comments connected the pardon to CZ Zhao’s earlier legal resolution: in 2023, Zhao agreed to plead guilty to one felony charge related to the Anti-Money Laundering (AML) regime at Binance.

“Every smarmy, suspect deal in this administration has cryptocurrency behind the curtain,” Durbin said during the hearing.

Confirmation odds remain tight as Republicans seek a simple majority

Outside the substance of crypto enforcement, the political math around confirmation could prove decisive. Republicans need only a simple majority of lawmakers present to confirm Blanche if his nomination clears the Senate Judiciary Committee and moves forward.

With Sen. Mitch McConnell still hospitalized after what his team described as a fall that led to pneumonia, Senate Republicans have a slim 52–47 margin to confirm Blanche, according to the reporting referenced in the source article.

Supporters and skeptics alike are watching whether the nomination will survive additional scrutiny beyond crypto issues. The hearing context described pushback not only on crypto policy, but also on other DOJ actions, including immigration-related enforcement and questions surrounding how the department may handle the release or processing of Jeffrey Epstein-related materials.

Blanche draws a line between developers and wrongdoing

While Durbin’s critique emphasized perceived restraint toward enforcement, Blanche’s own responses suggested a more targeted approach rather than a blanket retreat. The acting AG has previously signaled that DOJ’s crypto posture would shift toward differentiating between culpable actors and peripheral technical contributors.

The hearing record referenced a 2025 DOJ memo described as pushing “ending regulation by prosecution” in the crypto industry. Blanche was also described as having held at least $159,000 in digital-asset-related investments prior to divesting them to his children and grandchildren.

Blanche has said DOJ will focus on illicit conduct and will not pursue cases involving blockchain developers who are not responsible for criminal activity on platforms. In remarks cited from the Bitcoin 2026 conference, he said that if someone is developing software and is not a third-party user—and is not helping and knowing that third parties are using the development to commit crimes—then they “are not going to be investigated and not going to be charged.”

The distinction matters for builders and technical teams because it frames the threshold for criminal exposure around intent, knowledge, and the role in facilitating wrongdoing. For investors and users, it signals that enforcement priorities may concentrate more heavily on operational participants rather than on the mere act of writing or maintaining code.

At the same time, the department’s enforcement footprint is not portrayed as entirely dormant. The source notes that federal prosecutors are expected to retry Tornado Cash co-founder Roman Storm after a jury in 2025 failed to reach a verdict on two charges. That ongoing effort suggests DOJ’s approach may still include high-profile prosecutions tied to platforms alleged to be used for illegal activity.

Pardon questions and what Blanche says he will do next

Another flashpoint in the hearing was the presidential pardon granted to CZ Zhao. Republican Sen. Thom Tillis told Blanche he was “concerned that the Binance CEO got pardoned,” framing the clemency as part of broader concerns about accountability and fairness in how crypto-related cases are resolved.

Blanche responded that, if confirmed, he would review the pardon process. The comment did not specify whether that review would lead to any particular legal action, but it indicates a willingness to scrutinize decision-making rather than treat the pardon as settled beyond DOJ’s reach.

As the confirmation process continues, readers should watch not only for whether Blanche secures the votes he needs, but also for what DOJ’s internal guidance means in practice—especially whether prosecutors continue pursuing developer-focused cases, how ongoing trials like Roman Storm’s proceed, and whether Blanche’s promised review of the pardon process signals broader changes to enforcement strategy.

A California pair has been indicted on allegations of running a darknet drug operation that prosecutors say generated hundreds of thousands of dollars in cryptocurrency proceeds from fentanyl and methamphetamine sales.

According to a Wednesday statement from the U.S. Department of Justice, Nicholas Aguilar and Jessica Marcolina allegedly operated vendor accounts under the name “HotGirlzClub” across multiple darknet marketplaces and shipped more than 500 drug parcels across the United States during a seven-month period in 2025.

Federal prosecutors allege the pair laundered proceeds from those sales through cryptocurrency transactions intended to hide the origin of the funds before law enforcement identified the operation.

Searches of the suspects’ California residence uncovered drug packaging materials, a food processor containing suspected narcotics residue, firearms, and warning labels advising customers to “be safe until you know your tolerance for the product,” the Justice Department said.

Investigators also accused Aguilar and Marcolina of operating an illegal firearms manufacturing operation that produced ghost guns, suppressors, and upper and lower firearm receivers.

If convicted, each defendant faces up to life in prison on drug trafficking conspiracy charges and up to 20 years in prison for conspiracy to commit money laundering, according to the department.

Crypto remains part of anti-drug enforcement efforts

The indictment adds to a series of cases in which U.S. authorities have targeted cryptocurrency used to move or conceal proceeds from narcotics trafficking.

In May, the Treasury Department’s Office of Foreign Assets Control sanctioned more than a dozen individuals and entities that it said helped convert fentanyl cash proceeds into cryptocurrency on behalf of Mexico’s Sinaloa Cartel.

Earlier in March, a federal grand jury in Ohio indicted two Chinese pharmaceutical companies and six Chinese nationals on charges tied to trafficking fentanyl precursor chemicals and laundering proceeds through cryptocurrency, according to federal prosecutors.

Law enforcement agencies outside the United States have also expanded their use of blockchain analytics in drug investigations. In April, South Korean authorities extradited alleged drug trafficking leader Park Wang-yeol from the Philippines, and investigators used blockchain forensics to trace at least 6.8 billion won (about $5 million) in Bitcoin-linked drug proceeds.

Authorities have also demonstrated that older crypto holdings linked to drug crimes remain within reach of investigators. In March, Ireland’s Criminal Assets Bureau, with technical assistance from Europol’s European Cybercrime Centre, recovered access to and seized a wallet holding 500 Bitcoin that was tied to convicted drug dealer Clifton Collins after the assets had long been considered inaccessible.

The United States has also continued pursuing operators of crypto-enabled darknet marketplaces. In February, a federal court in New York sentenced the Taiwanese founder of the Incognito dark web marketplace to 30 years in prison after prosecutors said the platform facilitated illegal drug sales using cryptocurrency.

Crypto investigator ZachXBT criticized hardware wallets Thursday, calling them unreliable for signing transactions or storing meaningful funds.

In his view, all hardware wallet solutions present today fall short on security and usability, making them unsuitable for high-stakes operations.

He recommends using a dedicated iPhone solely as a signing device, stripped down for wallet purposes only. This approach, he said, offers better control and fewer vulnerabilities than traditional hardware wallets, though he added the tongue-in-cheek caveat: “Only do this if you are not low iq.”

The investigator singled out Ledger as the worst offender, pointing to frequent Ledger Live updates that unnecessarily overhaul the UI and apps, often breaking basic functions in the process. The post quickly sparked debate ion crypto social media, with users sharing their own experiences with hardware wallet frustrations.

Trump has stepped up efforts to advance the Senate’s crypto market structure bill by convening key Republican senators at the White House as lawmakers push to secure a floor vote before the August recess.

According to Politico, President Donald Trump is scheduled to meet several Republican senators at the White House on Thursday to discuss the Senate’s crypto market structure bill and the remaining steps needed to move it toward a vote.

Senator Bernie Moreno told the publication that lawmakers will brief Trump on the legislation and “its path to success,” while a Senate Republican aide confirmed that Senator Cynthia Lummis will also attend the meeting.

“We’ll be talking about the entirety of the bill. I mean, obviously the president’s been very engaged in this bill,” Moreno said. “He’s the one who’s really driven the innovation that I think will pay dividends.”

The White House meeting comes as Senate Republicans work to pass the legislation, known as the CLARITY Act, before lawmakers leave Washington for the August recess. Many lawmakers have described the current work period as the best opportunity to move the bill before campaigning for the midterm elections intensifies.

Senate negotiations continue ahead of expected floor vote

Speaking to Politico, Senator Thom Tillis said he hopes lawmakers can resolve the remaining issues by the end of the week so the legislation can reach the Senate floor before the recess.

“I’m hoping that we can come up with some agreement by the end of this week,” Tillis said. “I think it’s critical if we’re going to try and get this across the floor before August recess.”

Attention has also turned to a revised draft of the bill. In an interview with Fox Business on Wednesday, Lummis said an updated version will be introduced within the next few days and said she expects the legislation to reach the Senate floor next week.

The Senate measure has been under negotiation for months, with lawmakers still discussing conflict-of-interest provisions, protections for non-custodial software developers, and rules governing stablecoin-related rewards. Senate Majority Leader John Thune previously said the chamber would vote on the CLARITY Act before the August recess, although he did not commit to a specific date.

The legislation requires 60 votes to pass, meaning Republicans will need Democratic support after the House approved its version of the bill last year.

Meanwhile, several Democratic senators have continued pressing for stronger ethics safeguards before backing the legislation. Senators Chris Murphy, Jeff Merkley, and Chris Van Hollen have argued that the final bill should explicitly prevent the president, vice president, members of Congress, senior executive officials, and their immediate families from profiting from crypto businesses that could be affected by future regulation.

Murphy said during a July 14 press conference that “there is no reason to pass a new regulatory system for crypto if this system does not stop Trump’s corruption,” linking his criticism to President Trump’s reported financial interests in World Liberty Financial and other crypto ventures. Trump has denied wrongdoing related to his digital asset businesses.

Prediction markets see better odds of Senate action

Away from Capitol Hill, prediction market traders have become more confident that the legislation will receive a Senate vote before lawmakers leave for the August recess.

On Kalshi, traders have raised the probability of a Senate vote before the recess to 79%, up from 68.8% a day earlier.

Confidence about the bill becoming law remains more restrained. Kalshi’s roughly $3 million market assigns a 36% chance that the CLARITY Act will become law this year and a 62% chance that it will be enacted before the end of 2027.

On Polymarket, traders currently place a 39% probability on the CLARITY Act being signed into law during 2026.

U.S. President Donald Trump is scheduled to meet with several senators at the White House on Thursday to hear updates on the federal crypto market structure bill currently under negotiation in Washington. The discussion is expected to focus on progress toward passing the legislation, known as the CLARITY Act.

According to Politico, Senator Bernie Moreno said a group of senators will brief the president on the bill and outline “its path to success.” Senator Cynthia Lummis is also expected to attend, based on a Senate Republican aide’s account. Moreno said Trump has been closely engaged with the effort, framing the president as a key driver of legislative momentum.

Key takeaways

• Trump will meet with senators on Thursday to receive an update on the CLARITY Act and its prospects for passage.
• Lawmakers are aiming to advance the bill before the Senate’s August recess, with some calling the window a final realistic chance before midterm elections.
• Senator Thom Tillis told Politico that he is seeking agreement by the end of the week on unresolved parts of the bill.
• Prediction markets show relatively high odds of a Senate vote before the August recess, but lower odds that the bill becomes law in the same timeframe.

White House meeting signals push to move the CLARITY Act

The Thursday meeting comes as lawmakers race to finalize the CLARITY Act ahead of the Senate’s August recess. Politico reports that many legislators view the current legislative stretch as the last realistic opportunity to pass the measure before the midterm election cycle.

Moreno said senators will discuss the “entirety of the bill,” adding that Trump has been actively involved in the initiative. The remarks underscore how the effort is being framed not just as a committee process, but as a broader, top-level political priority meant to reach a decisive procedural outcome in the Senate.

Senator Thom Tillis, who has been working on specific “unresolved provisions” tied to the CLARITY Act, told Politico he hopes lawmakers can reach agreement by the end of this week. He emphasized the urgency of moving the legislation “across the floor” before the August recess.

What lawmakers are waiting for: a revised draft

Lawmakers are currently awaiting a revised version of the CLARITY Act. In an interview with Fox Business on Wednesday, Lummis said a new draft would be introduced within days and that she expects it to be placed on the Senate floor next week.

The timing matters because the CLARITY Act is still contingent on resolving outstanding elements. With the Senate calendar approaching recess, the revised draft functions as a gating factor: without language that can clear remaining objections, the bill may stall procedurally even if broad support exists among key legislators.

Cointelegraph reached out to Senator Lummis for comment, but the meeting and the drafting schedule suggest lawmakers are working toward a near-term floor push rather than a prolonged revision cycle.

Prediction market odds diverge between “vote” and “become law”

Market-based odds tracked by traders indicate a split between the likelihood of a Senate vote and the likelihood of the bill ultimately becoming law.

On Kalshi, traders assigned a 79% chance to the proposition that the Senate will vote on the CLARITY Act before the August recess. That figure is reportedly up from 68.8% the previous day. The shift suggests that traders see improving odds of procedural progress, likely tied to expectations around the revised draft arriving soon and a potential floor schedule.

However, traders were less confident about the bill’s path to enactment within the current year. According to the Kalshi market data cited in the report, a $3 million prediction market gave the CLARITY Act a 36% chance of becoming law in 2026, and a 62% chance of doing so before the end of 2027.

Polymarket traders were similarly cautious about timing: the cited Polymarket figure put the chance that the CLARITY Act is signed into law this year at 39%. The difference between “vote” odds and “signed into law” odds reflects a common dynamic in legislative forecasting—procedural movement can occur faster than the final legislative, executive, and implementation steps needed for a bill to become law.

Why the next few days could be decisive

The immediate pressure point is not only whether senators can agree on remaining provisions, but whether that agreement can be translated into a revised draft capable of reaching the Senate floor in time for votes before the August recess. Tillis’s comments to Politico indicate that negotiations over unresolved terms are actively ongoing, and Lummis’s timeline for introducing a new draft within days points to a short, high-stakes window for consolidation.

For market participants, the key distinction is between near-term legislative scheduling and longer-term enactment probabilities. Kalshi’s relatively high odds for a Senate vote contrast with lower odds for the bill becoming law in 2026 and with Polymarket’s comparatively modest estimate for signing in the current year. Traders appear to be pricing in the possibility of floor action, while still discounting hurdles beyond the Senate’s vote.

As lawmakers await the revised draft and push toward next week’s potential floor timetable, readers will likely want to watch two things closely: whether unresolved provisions get settled quickly enough to maintain vote momentum, and how quickly prediction market odds shift for “signed into law” once the revised text is officially introduced.