Trump Officials Signal Shift in Crypto Enforcement Focus to Criminals, Not Developers

Acting Attorney General Todd Blanche and FBI Director Kash Patel took the stage at a Bitcoin 2026 Conference panel to sketch out what they call a kinder, gentler approach to digital assets—stressing support for builders while pointing the enforcement gun at actual criminals rather than code. Coinbase's Chief Legal Officer Paul Grewal, running the virtual show, kicked things off by asking the officials for their Bitcoin origin stories. Blanche confessed his son had to drag him into Bitcoin and called him a "clown and idiot" for sitting on the sidelines, though he quickly noted that government ethics rules now forbid him from touching any assets. Patel, meanwhile, positioned Bitcoin and virtual assets as straight-up economic infrastructure—assets "just like business and everything else" that "power and muscle the world."

Grewal wasn't there for small talk, though. He pushed the officials hard on the DOJ and FBI's history of going after crypto. Blanche admitted some prior enforcement campaigns missed the mark, suggesting earlier administrations pursued developers in ways that trampled core rights. His take: the government shouldn't be using software architects as punching bags for criminals' behavior. The focus needs to stay on "the third party criminal and not the builders and platform builders." Blanche warned that aggressive enforcement chased some platforms overseas and reflected a fundamental misunderstanding that "stifled innovation" and "suffocated enthusiasts." "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 said.

Blanche drew a clear line in the sand between criminal misuse of crypto and the technology underneath. He promised the government won't look the other way when bad actors use Bitcoin or other digital assets for shady business, but he also shot down the idea that regular participants should flinch every time a prosecutor sneezes. On the policy questions hovering over cases like Tornado Cash, Roman Storm, and Samourai Wallet, he offered this: if you're building software and you're not the third-party user actually committing the crime, "you are not going to get investigated and/or get charged." For coders feeling the heat of scrutiny, his message was reassuring: "your lawyer should feel very comfortable working with the FBI."

Patel backed up that stance while putting the spotlight on fraudfighting. He said the FBI has spent the past year hunting down scam operations that weaponize crypto, including networks linked to foreign adversaries whose mission seems to be "policing Americans and fleece them from their hard earned assets." His aim is simple: get the bureau "looking at the right people" and make sure everyday Americans buying digital assets can sleep soundly knowing their funds aren't just sitting targets. Patel also pointed out that the FBI isn't waiting for crimes to happen—they're pushing prevention work on the "front end" to catch schemes before they drain another victim's wallet.

Both officials packaged the emerging approach in plain terms: Bitcoin and code aren't the enemy, crime is. Patel said federal law enforcement will prosecute criminal activity "in Bitcoin or out of Bitcoin." Blanche told crypto participants they "shouldn't sleep with one eye open" over normal development or usage, assuming they're not dabbling in fraud, money laundering, or other bad behavior. When asked what makes this moment different for Bitcoin policy, Blanche pointed directly at the White House, describing the current crew as "by far the most pro-crypto administration in the world" and making clear that "we want to be the crypto capital of the world."