Acting Attorney General Todd Blanche and FBI Director Kash Patel appeared at a virtual panel during the Bitcoin 2026 Conference, moderated by Coinbase Chief Legal Officer Paul Grewal. The session was meant to signal a shift in how the U.S. government approaches digital assets, with a strong emphasis on supporting developers and targeting actual criminal activity rather than the code or its creators.
Both officials shared personal stories to open the discussion. Blanche admitted his son called him a “clown and idiot” for not investing in Bitcoin earlier, though his current government role prevents him from owning any crypto assets. Patel described Bitcoin and other digital currencies as part of the economic infrastructure, comparing them to any other asset class that “powers and muscles the world.”
Past Enforcement Deemed Misguided
Paul Grewal pressed the officials on previous prosecutions. Blanche argued that under the prior administration, the Justice Department and FBI had pursued cases against software developers in ways that trampled on basic rights. He said the government should focus on “the third party criminal and not… the builders and platform builders.” Blanche also said aggressive enforcement had driven some crypto platforms out of the United States, stifling innovation and hurting enthusiasts.
Blanche drew a firm line between criminal use of crypto and the underlying technology. He stated that while the government will not excuse bad actors—whether they use Bitcoin, fiat currency, or any other tool—ordinary developers and users should not live in fear of prosecution. He pointed to cases involving Tornado Cash, Roman Storm, and Samourai Wallet as examples of investigations that perhaps went too far.
Reassurance for Coders
Blanche made a clear promise: if you are building software and are not yourself committing a crime, “you are not going to get investigated and/or get charged.” He added that any developer under investigation should feel comfortable having their lawyer work directly with the FBI. Patel reinforced this stance but emphasized that law enforcement will remain active against fraud. He said the bureau has spent the past year targeting scam centers that use crypto, including networks tied to foreign adversaries.
Patel said the goal is for the FBI to “look at the right people” and for everyday Americans who buy digital assets to feel confident that their funds are safe. He also mentioned proactive prevention work on the “front end” to stop fraudulent schemes before they reach victims.
A White House Driven Shift
When asked why this moment feels different, Blanche pointed directly to President Trump. He described the current administration as “by far the most pro-crypto administration in the world” and said the goal is to make the United States “the crypto capital of the world.” Blanche called the previous administration’s approach to digital assets “outrageous” and “ill advised,” urging the government to rethink how it views open-source code.
Both officials framed the message simply: Bitcoin and software code are not the targets, crime is. Patel said federal law enforcement will prosecute criminal activity whether it happens “in Bitcoin or out of Bitcoin.” And Blanche assured developers and users alike that they “shouldn’t sleep with one eye open” over routine development or use, as long as they stay away from fraud, money laundering, and other offenses.
This post first appeared on Bitcoin Magazine and is written by Micah Zimmerman.
