At the Bitcoin 2026 Conference, acting Attorney General Todd Blanche and FBI Director Kash Patel signaled a significant policy shift for U.S. digital asset regulation.
“Bitcoin isn’t going anywhere” was the recurring theme. The officials stressed that the government will refocus its efforts from prosecuting software developers to targeting actual criminals.
Bitcoin Origin Stories
Coinbase Chief Legal Officer Paul Grewal moderated the virtual discussion. He started by asking Blanche and Patel how they first encountered Bitcoin. Blanche revealed that his son pushed him toward Bitcoin, even calling him a “clown and idiot” for not investing earlier. However, as a government official, he is barred from owning such assets. Patel framed Bitcoin and other virtual currencies as essential economic infrastructure, comparing them to traditional assets that “power and muscle the world.”
Shifting Enforcement Strategy
Grewal pushed the officials on past prosecutions involving crypto. Blanche argued that some efforts by the prior administration were misguided, particularly cases targeting developers. He stated that the government should not treat software builders as stand-ins for criminals. The focus, he said, should remain on “the third party criminal and not… the builders and platform builders.” Blanche believes that aggressive enforcement caused platforms to leave the U.S. and stifled innovation. He claimed that under the last administration, the government was “stifling innovation and depriving US citizen and Bitcoin and crypto enthusiasts from doing what they should be able to.”
Clarity for Developers
When asked about specific cases like Tornado Cash and Samourai Wallet, Blanche offered reassurance. He said that if a person is developing software and is not the third-party user committing a crime, “you are not going to get investigated and/or get charged.” He also told coders that if they are under investigation, their lawyers should feel comfortable working with the FBI. Patel echoed this, stating the FBI has spent the past year targeting scam centers, especially those linked to foreign adversaries that aim to “police Americans and fleece them from their hard earned assets.” His goal is for Americans to feel their digital assets are safe. He also noted the FBI is working on prevention to stop schemes before they reach victims.
A New Era for Crypto Policy
Blanche credited President Trump for the policy shift, calling the current administration “by far the most pro-crypto administration in the world.” He wants the U.S. to become “the crypto capital of the world.” He criticized the prior administration’s “attacks on the industry” as “outrageous” and “ill advised.” Both officials framed the new doctrine simply: Bitcoin and code are not the targets; crime is. Patel said federal law enforcement will prosecute criminal activity “in Bitcoin or out of Bitcoin.” Blanche concluded by saying that people in crypto “shouldn’t sleep with one eye open” over routine development or use, as long as they are not engaged in fraud or money laundering.
This post first appeared on Bitcoin Magazine and is written by Micah Zimmerman.
