Acting Attorney General Confirms 'Code is Not a Crime' Policy Shift at DOJ

Acting Attorney General Todd Blanche announced at the Bitcoin 2026 conference on Monday that the Department of Justice will no longer prosecute developers unless they knowingly help third parties commit crimes, marking a significant policy shift from the Biden administration. The announcement comes as cases against crypto developers continue, including Roman Storm's conviction for conspiracy to operate an unlicensed money transmitting business related to Tornado Cash, and the November sentencing of Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill. Blanche previously issued a memo as deputy attorney general arguing that digital asset oversight should be handled by regulators rather than criminal enforcement. FBI Director Kash Patel, appearing alongside Blanche, emphasized continued focus on cryptocurrency-enabled pig butchering scams in Southeast Asia.

DOJ's 'Code is Not a Crime' Policy Shift

• ▪Todd Blanche issued a memo as deputy attorney general stating the Justice Department would avoid bringing cases that effectively impose regulatory frameworks on digital assets.
• ▪Acting Attorney General Todd Blanche spoke at the Bitcoin 2026 conference on Monday.
• ▪Todd Blanche previously served as deputy attorney general before becoming acting attorney general.
• ▪Todd Blanche's deputy attorney general memo argued that digital asset oversight should be handled by regulators rather than through criminal enforcement.
• ▪Todd Blanche said developers who are not helping third parties commit crimes will not face charges from the Justice Department.
• ▪President Donald Trump removed Pam Bondi as DOJ head.

Ongoing Prosecutions of Crypto Developers

• ▪Coinbase Chief Legal Officer Paul Grewal asked Todd Blanche about how developers should interpret the Justice Department's approach.
• ▪President Donald Trump has been asked to review a pardon for Keonne Rodriguez.
• ▪Roman Storm was found guilty last year on a charge of conspiracy to operate an unlicensed money transmitting business.
• ▪Roman Storm is a developer of the crypto mixing service Tornado Cash.
• ▪The Tornado Cash and Samourai Wallet cases were brought under the Biden administration.
• ▪The jury in Roman Storm's trial could not reach a conclusion on charges of conspiracy to commit money laundering and conspiracy to violate U.S. sanctions.
• ▪Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill were sentenced in November for operating the Samourai bitcoin mixing service.

Law Enforcement Priorities in Crypto Space

• ▪FBI Director Kash Patel plans to continue efforts against pig butchering scams this summer on the ground in Cambodia, Burma and Thailand.
• ▪FBI Director Kash Patel emphasized his focus on pig butchering scams, also known as romance scams.
• ▪FBI Director Kash Patel appeared on a panel with Todd Blanche at the Bitcoin 2026 conference on Monday.
• ▪Pig butchering scams involve scammers building relationships with victims to lure them into fraudulent investments.

Perspective of Crypto developers and privacy advocates

• ▪Prosecutions of Roman Storm and Samourai Wallet founders targeted developers for creating tools rather than for directly committing crimes.

Perspective of Law enforcement and financial crime prosecutors

• ▪Tornado Cash was used to launder billions of dollars including funds stolen by North Korean hackers, making developer liability a legitimate enforcement tool.

Perspective of Financial regulators

• ▪Todd Blanche's memo argues that regulatory agencies rather than criminal prosecutors should establish frameworks for digital asset compliance.

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