Senate Dems Slam Doj’s decision to ax crypto unit as a ‘free pass’ for criminals

US Deputy Deneral Test Todd Blanche is under fire from the Senates Democrats after its recent decision to narrow the Department of Justice’s (DOJ) crypto enforcement priorities and dissolves its crypto enforcement team.

In a Thursday letter to Blanche, six Senate Democrats. Mazie Hirono (D-Hawaii), Elizabeth Warren (D-Mass.), Dick Durbin (D-Aill.), Sheldon Whitehouse (Dr.i), Chris Coons (D-D-P.) And Richard Blumenthal (D-Conn.)-Blasted his decision to cut National Cryptocurrency.[ing] A free passport for cryptocurrency -money -whale. “

The Senators called Blanche’s Directive that DOJ staff no longer pursue cases against crypto exchanges, mixers or offline wallets “for the actions of their end user” or placed on criminal charges of offenses in cases involving crypto, including violation of the bank secret law (BSA). “

“By abdicating DOJ’s responsibility for enforcing federal criminal justice when violations involve digital assets, you suggest that virtual currency exchanges, mixers and other units dealing with digital assets do not have to fulfill their [anti-money laundering/countering the financing of terrorism] Obligations that create a systemic vulnerability in the sector for digital assets, “wrote the legislators.” Drug dealers, terrorists, scammers and opponents will exploit this vulnerability on a large scale. “

In his memo to DOJ staff on Monday night, Blanche quoted US President Donald Trump’s executive order of crypto, which promised to bring legislative clarity to the crypto industry as the reason for his decision.

“The Ministry of Justice is not a regulator of digital assets,” Blanche wrote, adding that the Agency “will no longer pursue litigation or enforcement measures that have the effect of overlaying a legislative framework on digital assets, while President Trump’s actual regulators perform this work outside the punishing criminal justice framework.”

Instead, Blanche called DOJ staff to focus their enforcement efforts on prosecuting criminals using “victims digital asset investors” or those using crypto to promote other criminal schemes such as organized crime, gang financing and terrorism.

Read more: Doj Axes Crypto Unit as Trump’s regulatory withdrawal continues

However, for the Senate Democrats, Blanche’s claim does not cut mustard.

“You claim in your memo that DOJ will continue to prosecute those who use Cryptocurrencies to commit crimes. But to allow the units that allow these crimes – such as cryptocurrency -kioscor operators – to operate outside the federal legislative framework without fear of prosecution, will only result in more Americans being explored,” the laws.

The legislators called on Blanche to rethink his decision to dismantle NCET and called it a “critical resource for state and local law enforcement, which often lacks technical knowledge and skill to investigate cryptocurrency -related crimes.”

New York Court Attorney Latitia James raised similar concerns in her own letter to Congress on Thursday and urged legislators to adopt federal legislation to regulate the crypto markets. Although her letter itself did not mention Blanche’s Memo or the Skodden of NCET, a press release from her office emphasized that her letter “coming after [DOJ] advertised settlement of federal criminal cryptocurrency -depletion, making a robust legislative framework all the more critical. “

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