The American prosecutor General Todd Blanche is under fire of the Democrats of the Senate following his recent decision to reduce the priorities of the application of the Crypto of the Ministry of Justice (DOJ) and to dissolve his team from the crypto-application.
In a Thursday letter to Blanche, six Senate Democrats – Sens. Mazie Hirono (D-Hawaii), Elizabeth Warren (D-Mass.), Dick Durbin (d-ill.), Sheldon Whitehouse (Dr.i), Chris Coons (d-Del.) And Richard Blumenthal (D-Conn.)-launched his decision to cut the National Cryptocurnarn[ing] A free pass to cryptocurrency silver launders. »»
Senators called the White Directive according to which the Doj personnel no longer pursued cases against crypto exchanges, mixers or offline wallets “for acts of their end users” or carries criminal accusations for regulatory violations in cases involving the crypto, including the violations of the Bank Secrecy Act (BSA), “nonsensitulizing”.
“By abdicating the responsibility of the DoJ to apply federal criminal law when violations involve digital assets, you suggest that [anti-money laundering/countering the financing of terrorism] The obligations, the creation of a systemic vulnerability in the digital asset sector, “wrote legislators.” Drug traffickers, terrorists, fraudsters and adversaries will exploit this large -scale vulnerability. »»
In his memo to Doj staff on Monday evening, Blanche cited the executive decree of US President Donald Trump on Crypto, who promised to bring regulatory clarity to the cryptography industry, as a reason for his decision.
“The Ministry of Justice is not a regulator of digital assets”, wrote Blanche, adding that the agency “will no longer pursue disputes or application measures which have the effect of superimposing regulatory executives on digital assets while the real regulators of President Trump do this work outside the framework of criminal court Puminy”.
Instead, Blanche has urged DoJ staff to concentrate their application efforts on prosecutors who use “digital asset investors” or those who use crypto in the pursuit of other criminal regimes, such as organized crime, gang funding and terrorism.
Read more: Doj Axes Crypto Unit while Trump’s regulatory withdrawal continues
For the Democrats of the Senate, however, the claim of Blanche does not completely cut mustard.
“You claim in your memo that the doj will continue to continue those who use cryptocurrencies to perpetrate crimes. But allowing entities that allow these crimes – such as cryptocurrency kiosk operators – to operate outside the federal regulatory framework without fear of prosecution will only use more Americans,” the legislators wrote.
The legislators urged White to reconsider his decision to dismantle the NCET, calling it a “critical resource for the application of the law of the State and the State which often do not have the technical knowledge and the skills to investigate crimes linked to cryptocurrency”.
The New York General Prosecutor, Letitia James, raised similar concerns in her own letter to the congress on Thursday, urging legislators to adopt federal legislation to regulate cryptographic markets. Although her letter herself is not mentioned in the note of the Blanche note or the trigger of NCET, a press release from his office stressed that his letter “comes after the [DOJ] announced the dismantling of the application of federal fraud on cryptocurrency, making a regulatory framework robust all the more critical. »»
