Senators Push Deputy AG Over DOJ's Shutdown of Crypto Enforcement Unit
On Jan. 28, 2026, six U.S. senators pressed the Deputy Attorney General for answers after the Department of Justice disbanded its cryptocurrency enforcement unit, pointing to a reported 162% surge in illicit crypto activity during 2025 as evidence the move was premature. The lawmakers said the spike in illicit use of digital assets undermines the rationale for shrinking specialized enforcement capacity at a moment when investigators increasingly rely on blockchain expertise.
The exchange matters because it highlights potential gaps in anti-money laundering, fraud prevention and national security efforts tied to digital assets; reduced specialized resources could hamper prosecutors' ability to trace complex on-chain flows. The senators’ pressure signals rising congressional scrutiny of DOJ crypto policy and could prompt the department to clarify its rationale, consider restoring dedicated resources, or adopt alternative safeguards to address the sharp uptick in illicit activity.