The US Justice Division is not going to goal software program builders who create decentralized platforms for transmitting cryptocurrencies with out felony intent, a senior official mentioned on Thursday.
Appearing Assistant Legal professional Common Matthew Galeotti advised a digital property summit in Wyoming that writing laptop code by itself just isn’t against the law.
“Our view is that merely writing code, with out ill-intent, just isn’t against the law,” he mentioned, including that the company is shifting away from charging builders who fail to register as cash transmitters.
Decentralized Exchanges Say They Lack Management Over Consumer Transactions
Cash transmitters, equivalent to PayPal and Money App, should get hold of licenses. They’re additionally required to vet prospects and report suspicious exercise.
Nonetheless, these obligations have turn out to be a flashpoint for the crypto sector. Decentralized exchanges argue they can not meet such necessities as a result of they haven’t any oversight of the transactions on their platforms.
NEW: US DOJ’S ACTING AAG MATTHEW GALEOTTI SAYS “OUR VIEW IS THAT MERELY WRITING CODE, WITHOUT ILL INTENT, IS NOT A CRIME. INNOVATING NEW WAYS FOR THE ECONOMY TO STORE AND TRANSMIT VALUE AND CREATE WEALTH, WITHOUT ILL INTENT, IS NOT A CRIME”https://t.co/iyGVBr0BCZ
— DEGEN NEWS (@DegenerateNews) August 21, 2025
The controversy intensified after a New York jury earlier this month convicted Roman Storm, a co-founder of Twister Money, of conspiracy to function an unlicensed cash transmitting enterprise.
Twister Money is a privacy-focused service that makes cryptocurrency transactions tougher to hint. The jury deadlocked, nonetheless, on whether or not Storm was responsible of cash laundering or sanctions evasion.
Critics of the case argued that Storm had merely written code, whereas prosecutors mentioned the service enabled illicit finance.
DOJ Pledges To Pursue Fraud, Ponzi Schemes And Laundering Networks
Galeotti famous that future prosecutions would require clear proof of felony intent. This consists of knowingly aiding fraud, laundering or sanctions evasion.
Moreover, he clarified that statutes prohibiting unlicensed cash transmission is not going to be used in opposition to builders. They’d solely apply if a developer knowingly broke the legislation.
“Innovating new methods for the economic system to retailer and transmit worth and create wealth, with out ill-intent, just isn’t against the law,” Galeotti mentioned.
The Justice Division will proceed to focus on dangerous actors, he added, pointing to circumstances of funding fraud, Ponzi schemes and China-based laundering networks.
Prosecutors To Prioritize Intent Over Technical Classification In Crypto Instances
Galeotti careworn that the legislation is technology-neutral. Instruments may be misused, he mentioned, however these misusing them ought to be prosecuted. Builders performing in good religion mustn’t face prices.
This additionally marks a transparent shift in coverage. Below the Biden administration, federal prosecutors in Manhattan introduced prices in opposition to Twister Money. On the similar time, the SEC pursued a number of circumstances in opposition to crypto corporations.
Against this, the DOJ beneath President Donald Trump disbanded its crypto enforcement workforce. As well as, regulators dropped a number of lawsuits in opposition to trade executives.
The shift signifies rising recognition in Washington that decentralized platforms function in another way from conventional cash transmitters.
Many builders had sought readability on potential legal responsibility for publishing open-source software program. In response, Galeotti mentioned these issues had been heard. He added that prosecutors would now give attention to intent, somewhat than on technical classification.
Crypto advocates welcomed the remarks as a step towards clearer guidelines, arguing that innovation shouldn’t be stifled by concern of prosecution.
On the similar time, anti-money laundering teams warned that privateness instruments and decentralized protocols can nonetheless allow large-scale felony exercise if left unchecked.
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