Acting Attorney General Todd Blanche and FBI Director Kash Patel used a Bitcoin 2026 Conference panel to signal a shift in how the U.S. government approaches digital assets, stressing support for developers and a focus on crime rather than code.
Coinbase Chief Legal Officer Paul Grewal, moderating the virtual discussion, opened by asking Blanche and Patel for their Bitcoin origin stories.
Blanche said his son pushed him toward Bitcoin and called him a “clown and idiot” for not investing, while also noting that his government role bars him from owning assets. Patel framed Bitcoin and other virtual assets as economic infrastructure, saying they are assets “just like business and everything else” that “power and muscle the world.”
Blanche: Prior administrations suppressed bitcoin and crypto
Grewal then pressed the officials on past prosecutions tied to crypto. Blanche said some prior FBI and Justice Department efforts were misguided, suggesting that earlier administrations pursued cases against developers in ways that cut across core rights.
He argued that the government should not treat software builders as stand‑ins for criminals and said the focus should be on “the third party criminal and not… the builders and platform builders.”
According to Blanche, aggressive enforcement caused some platforms to leave the United States and reflected a lack of understanding that “stifled innovation” and “suffocated enthusiasts.”
“In the last administration, we were stifling innovation and depriving US citizen and Bitcoin and crypto enthusiasts from doing what they should be able to,” Blanche said.
Blanche drew a line between criminal use of crypto and the underlying technology. He said the government will not excuse bad actors who use Bitcoin or other digital assets for crime, but he rejected the idea that ordinary participants should live in constant fear of prosecution.
On policy questions tied to cases such as Tornado Cash, Roman Storm, and Samourai Wallet, 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 told coders that if they are under investigation, “your lawyer should feel very comfortable working with the FBI.”
Patel echoed that stance while stressing active enforcement against fraud. He said the FBI has spent the past year targeting scam centers that use crypto, including networks tied to foreign adversaries that seek to “police Americans and fleece them from their hard earned assets.”
His goal, he said, is for the bureau to “look at the right people” and for Americans who buy digital assets to feel their funds are safe. Patel added that the FBI is proactively investigating crime in Bitcoin and other digital assets and is pushing prevention work on the “front end” to stop schemes before they reach victims.
Coders shouldn’t “sleep with their eye open”
Asked why this moment is different for Bitcoin policy, Blanche pointed to the White House. He said the shift “starts with President Trump,” describing the current team as “by far the most pro‑crypto administration in the world” and stating that “we want to be the crypto capital of the world.”
Blanche criticized what he called “attacks on the industry” by the prior administration as “outrageous” and “ill advised,” and said the government needs to adjust its thinking about digital assets and open‑source code.
Both officials framed the emerging doctrine in simple terms: 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 said people in crypto “shouldn’t sleep with one eye open” over routine development or use, as long as they are not engaged in fraud, money laundering, or other offenses.
Source: https://bitcoinmagazine.com/news/bitcoin-isnt-going-anywhere-fbi-discuss
