The US Justice Department will not target software developers who create decentralized platforms for transmitting cryptocurrencies without criminal intent, a senior official said on Thursday.
Acting Assistant Attorney General Matthew Galeotti told a digital assets summit in Wyoming that writing computer code by itself is not a crime.
“Our view is that merely writing code, without ill-intent, is not a crime,” he said, adding that the agency is shifting away from charging developers who fail to register as money transmitters.
Decentralized Exchanges Say They Lack Control Over User Transactions
Money transmitters, such as PayPal and Cash App, must obtain licenses. They are also required to vet customers and report suspicious activity.
However, these obligations have become a flashpoint for the crypto sector. Decentralized exchanges argue they cannot meet such requirements because they have no oversight of the transactions on their platforms.
The debate intensified after a New York jury earlier this month convicted Roman Storm, a co-founder of Tornado Cash, of conspiracy to operate an unlicensed money transmitting business.
Tornado Cash is a privacy-focused service that makes cryptocurrency transactions harder to trace. The jury deadlocked, however, on whether Storm was guilty of money laundering or sanctions evasion.
Critics of the case argued that Storm had simply written code, while prosecutors said the service enabled illicit finance.
DOJ Pledges To Pursue Fraud, Ponzi Schemes And Laundering Networks
Galeotti noted that future prosecutions will require clear evidence of criminal intent. This includes knowingly aiding fraud, laundering or sanctions evasion.
Additionally, he clarified that statutes prohibiting unlicensed money transmission will not be used against developers. They would only apply if a developer knowingly broke the law.
“Innovating new ways for the economy to store and transmit value and create wealth, without ill-intent, is not a crime,” Galeotti said.
The Justice Department will continue to target bad actors, he added, pointing to cases of investment fraud, Ponzi schemes and China-based laundering networks.
Prosecutors To Prioritize Intent Over Technical Classification In Crypto Cases
Galeotti stressed that the law is technology-neutral. Tools can be misused, he said, but those misusing them should be prosecuted. Developers acting in good faith should not face charges.
This also marks a clear shift in policy. Under the Biden administration, federal prosecutors in Manhattan brought charges against Tornado Cash. At the same time, the SEC pursued multiple cases against crypto firms.
By contrast, the DOJ under President Donald Trump disbanded its crypto enforcement team. In addition, regulators dropped several lawsuits against industry executives.
The shift indicates growing recognition in Washington that decentralized platforms operate differently from traditional money transmitters.
Many developers had sought clarity on potential liability for publishing open-source software. In response, Galeotti said those concerns had been heard. He added that prosecutors would now focus on intent, rather than on technical classification.
Crypto advocates welcomed the remarks as a step toward clearer rules, arguing that innovation should not be stifled by fear of prosecution.
At the same time, anti-money laundering groups warned that privacy tools and decentralized protocols can still enable large-scale criminal activity if left unchecked.
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