Crypto

Six Senators Accuse Deputy Attorney General of “Glaring” Crypto Conflict, Cite ProPublica Investigation

Published

3 months ago

January 29, 2026

Six Senators Accuse Deputy Attorney General of “Glaring” Crypto Conflict, Cite ProPublica Investigation

Six senators accused Deputy Attorney General Todd Blanche this week of having a conflict of interest when he shut down investigations into crypto companies, dealers and exchanges and eliminated an enforcement team dedicated to looking for crypto-related fraud and money-laundering schemes.

A letter written by Democratic Sens. Elizabeth Warren, Dick Durbin and Mazie Hirono and signed by Sens. Sheldon Whitehouse, Christopher Coons and Richard Blumenthal cited a ProPublica investigation that revealed Blanche owned at least $159,000 worth of crypto-related assets when he ordered an end to the work.

Durbin, Hirono, Whitehouse, Coons and Blumenthal serve on the Senate Judiciary Committee, which oversees the Justice Department.

The same senators previously sent a letter to Blanche raising concerns that his actions would help President Donald Trump’s financial interests in cryptocurrency. In their letter sent on Wednesday, they said Blanche’s actions appeared to violate the federal conflict of interest law.

“Last year, we asked for the rationale behind your puzzling decision to scale back the Department of Justice’s (DOJ) cryptocurrency enforcement efforts and urged you to reconsider. We write now in light of recent reporting that you held substantial amounts of cryptocurrency at the time you made this decision,” the senators wrote. “At the very least, you had a glaring conflict of interest and should have recused yourself.”

Blanche, the second-highest-ranking official at the Justice Department, signed an ethics agreement in February promising to dump his cryptocurrency within 90 days of his confirmation and not to participate in any matter that could have a “direct and predictable effect on my financial interests in the virtual currency” until his bitcoin and other crypto-related products were sold.

But on April 7, before he divested, he issued a memo titled “Ending Regulation by Prosecution” that halted investigations launched under President Joe Biden. In the memo, Blanche condemned the Biden Justice Department’s tough approach toward crypto as “a reckless strategy of regulation by prosecution, which was ill conceived and poorly executed.” The memo disbanded the agency’s National Cryptocurrency Enforcement Team, which had won several high-profile crypto-related convictions. Blanche said the agency would instead target only the terrorists and drug traffickers who illicitly used crypto, not the platforms that hosted them.

Days later, the six senators urged Blanche to reconsider, contending that his decision would otherwise help support sanctions evasion, drug trafficking, scams and child exploitation.

In their latest letter, they said their concerns had been realized. They cited an independent report that found there was a surge in illicit cryptocurrency activities in 2025, including crimes tied to money laundering and human trafficking. They also questioned Blanche’s reasons for the policy shift.

“Certainly, President Trump’s financial interests seem to have motivated some of his pardons of criminals convicted of cryptocurrency-related crimes,” their letter stated. “But the fact that you held substantial amounts of cryptocurrency at the time you made this decision calls into question your own motivations.”

A Justice Department spokesperson told ProPublica last week that Blanche’s crypto orders were “appropriately flagged, addressed and cleared in advance.” She did not elaborate or respond to questions asking who cleared his actions. The department did not respond this week to requests for comment about the senators’ criticism.

In this week’s letter, the six Democratic senators issued a series of questions demanding details about how and when Blanche’s actions were cleared and by whom.

They also asked Blanche to, no later than Feb. 11, provide any written determination he received about the legality of his crypto enforcement action; all his communications with ethics and Justice Department officials about the issue; and any communications he had with the crypto industry prior to issuing his April memo.

Their demands come approximately a week after the Campaign Legal Center, a nonpartisan government watchdog group, asked the Justice Department’s inspector general to investigate Blanche. Kedric Payne, the group’s general counsel and senior director of ethics, alleged that Blanche’s orders violated the law because they benefited the industry broadly, including his own investments. Payne estimated that the value of Blanche’s bitcoin holdings alone rose by 34%, to $105,881.53, between when he issued the memo and when he divested. At the time he issued the memo, Blanche also held investments in several other cryptocurrencies, including Solana and Ethereum, and stock holdings in Coinbase.

Under the federal conflicts-of-interest statute, government officials are forbidden from taking part in a “particular matter” that can financially benefit them or their immediate family unless they have a special waiver from the government. The penalties range from up to one year in jail or a civil fine of up to $50,000 all the way to as much as five years in prison if someone willfully violates the law.

“The public has a right to know that decisions are being made in the public’s best interest and not to benefit a government employee’s financial interests,” Payne wrote in his complaint to the inspector general.

Blanche, a former federal prosecutor for the Southern District of New York, was Trump’s lead attorney in the Manhattan trial that resulted in his being convicted of 34 felonies stemming from a hush-money payment to a porn actress, Stormy Daniels. Blanche also defended Trump against criminal charges accusing him of conspiring to subvert the 2020 election and retaining highly classified documents. (Those two cases were dropped after Trump was reelected president.)

Payne’s group expanded its investigation request on Wednesday, asking the Office of Government Ethics and the Justice Department’s ethics officer to look into whether Blanche violated his ethics agreement, the federal conflicts-of-interest statute and the federal law prohibiting false statements on compliance forms.

Crypto

ADI Foundation and Settlemint Launch ADGM Tokenization Rail for $30.9B RWAs

Published

5 hours ago

May 14, 2026

Press Room

ADI Foundation and Settlemint Launch ADGM Tokenization Rail for .9B RWAs

Integrated Infrastructure for Institutional Adoption

ADI Foundation and Settlemint announced a partnership on May 13 to launch a new digital securities infrastructure on the ADI Chain, aiming to streamline the tokenization of assets within the Abu Dhabi Global Market (ADGM) regulatory framework.

The collaboration integrates ADI Foundation’s compliance-ready Layer-2 blockchain with Settlemint’s digital asset lifecycle platform (DALP). The combined system is designed to handle the entire lifespan of a digital security, from initial token creation and on-chain recording to post-trade servicing and management.

The move addresses a primary hurdle for institutional investors: the difficulty of coordinating issuance, trading, settlement, and custody across fragmented jurisdictions. By providing an integrated architecture, the partners aim to offer a unified pathway for institutions to move traditional assets onto the blockchain.

“The future of investment and trading will not only be digitized, but also available 24 hours a day, 7 days a week,” said Andrey Lazorenko, CEO of ADI Foundation. “Our partnership brings together market infrastructure, institutional-grade blockchain, and a digital asset lifecycle platform to tokenize equities and trade them on secondary platforms.”

According to a media statement, the platform utilizes Settlemint’s implementation of the ERC-3643 standard—a protocol specifically designed for security tokens to ensure compliance with regulatory requirements. While the partnership is initially focusing on equity tokenization, the infrastructure is built to support a variety of other tokenized securities and financial instruments, pending regulatory approval.

The announcement comes as institutional interest in real-world assets ( RWAs) on-chain continues to accelerate. According to data from RWA.xyz, tokenized RWAs currently represent approximately $30.92 billion in on-chain value, with tokenized U.S. Treasuries accounting for roughly $15.20 billion of that total. Market analysts expect this trend to scale significantly. A 2026 analysis by BCG suggests the digital asset market could surge from $0.6 trillion in 2025 to $18.9 trillion by 2033.

Matthew Van Niekerk, co-founder and president of Settlemint, characterized the partnership as a “blueprint” for the broader financial industry.

“This partnership proves that regulated, multi-asset tokenization at national scale on public blockchains is not just feasible, but live,” Van Niekerk said. He added that the infrastructure is intended to be a model that central securities depositories (CSDs), exchanges, and clearing houses can adopt to integrate digital assets into existing operations.

Crypto

BlackRock COO: Cryptocurrency Demand Surpasses Firm’s Expectations, Signaling a Shift in Value

Published

17 hours ago

May 13, 2026

Press Room

BlackRock COO: Cryptocurrency Demand Surpasses Firm’s Expectations, Signaling a Shift in Value

BlackRock Chief Operating Officer Rob Goldstein revealed that demand for cryptocurrency has significantly exceeded the firm’s initial projections, marking a notable shift in institutional sentiment toward digital assets. Speaking during a Binance online stream, Goldstein addressed the market’s reception of BlackRock’s spot Bitcoin exchange-traded fund (ETF), IBIT, and outlined the asset manager’s broader strategic outlook on blockchain-based finance.

Demand Driven by Value Proposition, Not Speculation

Goldstein emphasized that the global demand for IBIT was stronger than anticipated, describing the interest not as fleeting speculative enthusiasm but as a recognition of a new value proposition rooted in emerging technology. He noted that investors are increasingly viewing cryptocurrency as a distinct asset class with potential for long-term portfolio diversification, rather than a short-term trading vehicle. This perspective aligns with BlackRock’s broader push to integrate digital assets into traditional investment frameworks.

Tokenization and the Future of Capital Markets

Goldstein predicted that the tokenization of capital market instruments remains in its early stages, with future growth expected to be measured in multiples rather than incremental percentages. He argued that blockchain infrastructure could fundamentally reshape how assets are issued, traded, and settled, reducing friction and increasing transparency. This view is consistent with growing industry interest in real-world asset (RWA) tokenization, a trend that major financial institutions are beginning to explore.

AI Agents and Digital Rail Transactions

In a forward-looking comment, Goldstein suggested that artificial intelligence agents will eventually conduct transactions directly via digital rails, or blockchain infrastructure, rather than logging into traditional bank accounts. This vision points to a future where automated systems interact with decentralized finance protocols, potentially streamlining operations across supply chains, payments, and asset management. While still conceptual, the statement underscores BlackRock’s attention to the convergence of AI and blockchain technologies.

The Education Gap Remains a Key Obstacle

Goldstein identified the primary barrier to broader adoption as a lack of investor education regarding the technical aspects of virtual assets and efficient portfolio allocation. Many institutional and retail investors remain uncertain about how to evaluate cryptocurrencies, assess risks, and integrate them into existing investment strategies. BlackRock’s emphasis on education suggests that the firm sees informed participation as critical to sustainable market growth.

Conclusion

BlackRock’s acknowledgment that cryptocurrency demand has exceeded expectations carries significant weight, given the firm’s status as the world’s largest asset manager with over $10 trillion in assets under management. Goldstein’s comments reflect a maturing institutional perspective that views digital assets not as a passing trend but as a structural evolution in finance. For investors, the key takeaway is that major financial players are moving beyond skepticism and actively building infrastructure for a tokenized future, even as educational gaps persist.

FAQs

Q1: What did BlackRock’s COO say about cryptocurrency demand?
Rob Goldstein stated that demand for cryptocurrency, particularly through BlackRock’s IBIT Bitcoin ETF, has exceeded the firm’s expectations, driven by a recognition of its value as an emerging technology rather than mere speculation.

Q2: What is BlackRock’s view on tokenization?
Goldstein described tokenization of capital market tools as still in its infancy, with future growth expected to be exponential. He believes blockchain infrastructure will play a key role in transforming how assets are managed and traded.

Q3: What is the biggest obstacle to cryptocurrency adoption according to BlackRock?
The main challenge is a lack of investor education on the technical aspects of virtual assets and how to allocate them effectively within a portfolio, according to Goldstein.

Crypto

MEXC Commits to 1,000 BTC Purchase as Guardian Fund Targets $500M Expansion

Published

1 day ago

May 13, 2026

Press Room

MEXC Commits to 1,000 BTC Purchase as Guardian Fund Targets 0M Expansion

Key Takeaways

BTC and USDT to Serve as Dual Reserve System for Market Stability

Crypto exchange MEXC is deepening its focus on reserve strength and user protection, announcing plans to expand its Guardian Fund fivefold to $500 million and acquire 1,000 bitcoin as part of a broader risk management strategy.

The exchange said the initiative will be rolled out over the next two years and is designed to create a dual-reserve structure combining liquid stablecoin holdings with long-term BTC reserves. The framework is intended to bolster platform stability and improve resilience during periods of market stress.

The announcement comes as MEXC continues to attract new capital and users. According to data from Defillama, the exchange recorded $271.6 million in net inflows over the past month through May 11, reflecting increased trading activity and participation across global markets.

Under the revised structure, the Guardian Fund will continue to hold significant USDT reserves to ensure immediate liquidity and operational flexibility. The addition of bitcoin is intended to provide a longer-term store of value capable of preserving purchasing power across market cycles.

Transparency Remains Key for MEXC

MEXC said the strategy is part of a disciplined reserve management approach rather than a reaction to short-term volatility. The company framed the expansion as an effort to build infrastructure comparable to institutional-grade financial safeguards increasingly expected in the digital asset industry.

“Trust has to be capitalized, not just claimed. The expansion of the Guardian Fund and the addition of bitcoin reserves reflect our commitment to building protection infrastructure that helps users access infinite opportunities with greater confidence,” CEO Vugar Usi said in a statement.

The exchange also emphasized transparency. Wallet addresses tied to the Guardian Fund’s USDT and bitcoin holdings have been disclosed publicly, allowing users to verify reserve balances on-chain in real time. The move highlights a broader trend among large trading platforms seeking to differentiate themselves through stronger balance sheets and more visible proof-of-reserves mechanisms.

For MEXC, the Guardian Fund expansion forms part of a wider push to position itself as a global platform capable of supporting long-term growth. The company said the initiative aligns with its broader strategy of improving transparency, strengthening risk management, and protecting users during periods of heightened market uncertainty.