US Government Shifts Crypto Policy: DOJ and FBI Focus on Crime, Not Developers

Acting Attorney General Todd Blanche and FBI Director Kash Patel used a panel at the Bitcoin 2026 Conference to outline a new U.S. government approach to digital assets. The focus: combating crypto crime while shielding developers from prosecution.

Coinbase Chief Legal Officer Paul Grewal moderated the virtual discussion, opening with personal Bitcoin origin stories from both officials.

Blanche shared that his son had called him a “clown and idiot” for not investing in Bitcoin earlier, though he noted his government role prohibits him from owning assets. Patel framed Bitcoin and other virtual assets as critical economic infrastructure, stating they are “just like business and everything else” that “power and muscle the world.”

Criticism of Past Crypto Enforcement

Grewal pressed the officials on previous prosecutions tied to crypto. Blanche criticized prior FBI and Justice Department efforts, arguing that earlier administrations misguidedly targeted developers, infringing on core rights. He emphasized that software builders should not be treated as proxies for criminals.

According to Blanche, aggressive enforcement in past administrations drove some platforms out of the U.S. and stifled innovation. He stated, “In the last administration, we were stifling innovation and depriving US citizen and Bitcoin and crypto enthusiasts from doing what they should be able to.”

Blanche drew a clear distinction between criminal use of crypto and the underlying technology. While condemning bad actors who exploit Bitcoin or other digital assets for crime, he rejected the idea that law-abiding participants should live in fear of prosecution.

Policy Clarity on High-Profile Cases

On specific cases like Tornado Cash, Roman Storm, and Samourai Wallet, Blanche stated that developers not directly involved in third-party criminal activity would not face investigation or charges. He assured coders under scrutiny, “your lawyer should feel very comfortable working with the FBI.”

Patel echoed this stance, emphasizing active enforcement against fraud. He revealed that the FBI has spent the past year targeting scam centers using crypto, including networks linked to foreign adversaries seeking to exploit Americans. His goal is for the bureau to “look at the right people” and ensure Americans feel secure in their digital asset investments.

Patel added that the FBI is proactively investigating crypto-related crime and prioritizing prevention to stop schemes before they harm victims. He warned criminals, “Coders shouldn’t ‘sleep with their eye open.’”

Why This Policy Shift Matters Now

When asked why this moment differs for Bitcoin policy, Blanche pointed to the White House. He stated the shift “starts with