In a significant policy change, the U.S. Department of Justice announced it will no longer pursue charges against software developers who create decentralized cryptocurrency platforms without criminal intent. Acting Assistant Attorney General Matthew Galeotti stated that merely writing code is not inherently criminal, marking a departure from previous enforcement actions related to unlicensed money transmission.
This decision aligns with the administration's broader realignment under President Donald Trump, which includes disbanding the DOJ’s crypto enforcement team and the Securities and Exchange Commission withdrawing from several cases against crypto firms. The move reflects evolving U.S. regulatory attitudes toward the crypto industry, emphasizing innovation and developer liability.
The DOJ's shift follows controversy over the prosecution of Tornado Cash co-founder Roman Storm, who was convicted of conspiracy related to unlicensed money transmission but not money laundering. Critics argued that Storm's actions were limited to creating computer code, not engaging in illicit activities.
This policy change is part of a broader trend of reduced regulatory scrutiny in the crypto sector. The SEC, under new leadership, has dismissed several high-profile cases against crypto firms, signaling a more lenient approach to digital asset regulation.
The DOJ's decision is expected to have significant implications for the cryptocurrency industry, potentially fostering innovation and development in decentralized finance platforms. However, it also raises questions about the balance between encouraging technological advancement and ensuring consumer protection in the rapidly evolving digital asset space.
