Trump’s Deputy Attorney General nominee faces conflict of interest allegations over crypto ties

An ethics watchdog group has filed a formal complaint against Deputy Attorney General Todd Blanche, alleging he violated federal conflict-of-interest laws by rolling back industry oversight while holding personal cryptocurrency investments.

The complaint follows a ProPublica investigation revealing that Blanche, a former criminal defense attorney for Donald Trump, held at least $159,000 in cryptocurrency-related assets. While still holding these assets, Blanche reportedly issued new policies that favored the crypto industry.

In an April memorandum, Blanche ordered an end to investigations into cryptocurrency companies that were initiated under the Biden administration. He also disbanded a specialized task force dedicated to investigating fraud and money laundering within the sector.

Blanche had previously signed an ethics agreement promising to divest his crypto holdings within 90 days. However, records show he only sold the assets more than a month after issuing the policy changes.

The Department of Justice has dismissed the allegations, describing the complaint as "baseless character assassination."

The controversy surrounding Deputy Attorney General Todd Blanche serves as more than just an ethics scandal; it is a definitive signal of the Trump administration’s sharp policy departure from the Biden era. The issuance of the memorandum titled "Ending Regulation by Prosecution" underscores a newfound leniency toward the cryptocurrency industry, a sector that faced intense scrutiny under the previous administration.

This move is a cornerstone of the administration’s broader deregulatory agenda, which frames emerging sectors like digital assets as "critical to national economic growth and innovation." However, the timing of this policy shift has raised significant institutional concerns. Blanche appears to have advanced decisions favoring an industry in which he held a direct financial stake, acting before his formal divestment was finalized—a sequence of events at the heart of current conflict-of-interest allegations.

The optics are further complicated by his method of divestment. By transferring his assets to his descendants, Blanche may have met the technical requirements of the law while circumventing its spirit. Such maneuvers allow wealth to remain within the family’s sphere of influence, potentially neutralizing the safeguards intended to prevent public officials from legislating for private gain.

In response, the Department of Justice has utilized a familiar political playbook. By attacking the whistleblower’s motives rather than addressing the specific timeline of the policy rollout and Blanche’s financial interests, the Department is prioritizing narrative control over a factual accounting of the ethics breach.

A significant number of Vietnamese Americans, particularly the younger generation, have become active participants in the cryptocurrency market. While these policy changes do not specifically single out our community, they are part of a larger regulatory environment that impacts all investors across the United States. This development serves as a reminder of the political risks and external factors that can influence the value of our investments as we navigate the financial landscape of the diaspora.