In a notable shift in its approach to the cryptocurrency sector, the Department of Justice (DOJ) announced that it will not target software developers who create decentralized platforms for transmitting cryptocurrencies, as long as there is no criminal intent.
DOJ Eases Stance On Crypto Regulation
Acting Assistant Attorney General Matthew Galeotti conveyed this message during remarks prepared for a digital asset summit in Wyoming, signaling a significant evolution in the government’s stance towards the crypto industry.
This comes amid President Donald Trump’s mission to transform the United States into the world’s crypto capital, boosted by the recent passage of three bills aimed at creating a more accommodative regulatory framework for digital assets.
Galeotti emphasized that merely writing code without malicious intent should not be considered a criminal act, marking a departure from previous enforcement actions, particularly those that focused on the requirement for digital asset platforms to register as money transmitters.
Traditionally, entities like Western Union and popular payment applications such as Venmo must adhere to strict regulations, including customer vetting and the reporting of suspicious activities aimed at preventing money laundering.
According to Reuters, these regulatory requirements have often been a point of contention within the crypto community, especially for decentralized exchanges that claim to have limited visibility over the transactions conducted on their platforms.
Privacy Vs Prosecution
A recent high-profile case involved the co-founder of Tornado Cash. The jury found Roman Storm guilty of conspiracy to operate an unlicensed money transmitting business, while it deadlocked on charges of money laundering and sanctions evasion.
Critics of the prosecution argued that the co-founder was merely a code creator and not someone who facilitated illicit activities within his decentralized protocol, which served to enhance privacy on public blockchains.
Featured image from DALL-E, chart from TradingView.com