Acting Attorney General Todd Blanche and FBI Director Kash Patel recently signaled a significant shift in the U.S. government's approach to digital assets during a panel at the Bitcoin 2026 Conference. Moderated by Coinbase Chief Legal Officer Paul Grewal, the discussion emphasized support for developers and a clear focus on criminal activity rather than the underlying code itself. Blanche, sharing his personal connection, mentioned his son's encouragement towards Bitcoin, though his government role prohibits him from owning such assets. Patel contextualized Bitcoin and other virtual assets as vital economic infrastructure, likening them to any other business assets that 'power and muscle the world'.

Blanche criticized previous administrations for what he described as a suppression of Bitcoin and crypto innovation. He argued that prior FBI and Justice Department efforts were misguided, particularly in prosecuting software developers. Blanche stressed that the government should not target software builders as proxies for criminals, asserting that the focus should be on 'the third party criminal and not… the builders and platform builders.' He contended that aggressive enforcement had stifled innovation, 'suffocated enthusiasts,' and caused some platforms to relocate outside the United States, thereby 'depriving US citizen and Bitcoin and crypto enthusiasts from doing what they should be able to.'

Drawing a clear distinction, Blanche stated that while the government would not condone the criminal use of Bitcoin or other digital assets, ordinary participants should not fear prosecution for routine development or use. Addressing policy questions related to cases like Tornado Cash, Roman Storm, and Samourai Wallet, he reassured coders that if they are developing software and are not the third-party users committing a crime, they would not face investigation or charges. He further advised developers under investigation that their lawyers should feel 'very comfortable working with the FBI.'

FBI Director Kash Patel reinforced this stance, highlighting the bureau's active enforcement efforts against fraud within the digital asset space. He noted that the FBI has dedicated the past year to targeting crypto-related scam centers, including networks linked to foreign adversaries that aim to 'police Americans and fleece them from their hard earned assets.' Patel's objective is for the FBI to 'look at the right people' and ensure Americans feel secure when purchasing digital assets. He also mentioned the FBI's proactive investigations into digital asset crime and its 'front end' prevention work to halt schemes before they impact victims.

When questioned about the reasons for this policy shift, Blanche attributed it to the current White House administration, spearheaded by President Trump. He characterized it as 'by far the most pro‑crypto administration in the world,' with ambitions for the U.S. to become 'the crypto capital of the world.' Blanche denounced previous 'attacks on the industry' as 'outrageous' and 'ill advised,' emphasizing the government's need to adapt its perspective on digital assets and open-source code. Both officials concisely articulated the new doctrine: Bitcoin and code are not the targets; crime is. Patel reiterated that federal law enforcement would prosecute criminal activity 'in Bitcoin or out of Bitcoin,' while Blanche assured crypto participants that they 'shouldn’t sleep with one eye open' for routine development or use, provided they are not involved in fraud, money laundering, or other illicit activities.