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 Trump administration's broader realignment, which includes disbanding the DOJ’s crypto enforcement team and the Securities and Exchange Commission withdrawing from several cases against crypto firms. The move 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. This shift underscores evolving U.S. regulatory attitudes toward the crypto industry and reflects growing concerns over innovation and developer liability.
In related developments, a coalition of finance industry bodies is urging the Basel Committee on Banking Supervision to reconsider its upcoming crypto asset standards for banks, set to take effect in January 2026. The groups argue that the crypto market has evolved since the standards were introduced in 2022, becoming more integrated with mainstream finance, and label the rules as overly conservative and economically unviable for banks. They have called for a temporary halt to the implementation process and suggest reevaluating the standards with updated data. This appeal comes amid a more favorable U.S. regulatory stance under President Donald Trump, which has made it easier for banks to engage with crypto assets. The Basel Committee lacks enforcement power, but member countries typically apply its standards to international banks operating in their jurisdictions.
Additionally, Tether, the largest issuer of stablecoins, has appointed Bo Hines, the former head of President Donald Trump’s crypto advisory council, as its strategic adviser for digital assets and U.S. strategy. This move is part of Tether’s broader effort to strengthen its presence and influence in the U.S. market. Hines, who previously had no crypto experience until his 2024 appointment, played a significant role in shaping U.S. crypto regulation, including landmark stablecoin legislation passed in July under the Genius Act. The new law requires stablecoins to be fully backed by assets like U.S. Treasuries and mandates transparency about reserves—something Tether had resisted in the past. Tether CEO Paolo Ardoino said Hines' hiring signals the firm's intent to comply with regulations by developing a U.S.-compliant stablecoin. Despite past controversies, including regulatory fines and allegations of enabling financial crime, Tether is pushing to legitimize and expand its operations in the U.S.
In the political arena, Senator Sherrod Brown of Ohio is positioning himself for a 2026 Senate campaign, despite losing his seat in 2024 partly due to strong opposition from the crypto-funded PAC Fairshake. The PAC, with $140 million in reserves, is expected to again target Brown. Despite his previous opposition to crypto legislation, Brown has tempered his tone, stating his support for safe crypto expansion that benefits Ohioans. Political analysts suggest that while Brown's defeat was narrow, his pro-worker stance could still resonate in Ohio. His campaign wasn’t clear on whether his positions have shifted. Party leaders like Chuck Schumer back his candidacy, though political odds in the state favor Republicans. Meanwhile, the Federal Reserve’s increasing attention to crypto, emphasized by the presence of Fed officials at a blockchain summit in Wyoming, signals a shift, especially under the influence of Trump-appointed regulators.
These developments reflect a dynamic and evolving landscape in the U.S. cryptocurrency sector, characterized by significant policy shifts, strategic industry moves, and changing political dynamics. As the industry continues to mature, stakeholders are closely monitoring these changes to navigate the complex regulatory and market environment.
