In a landmark shift, the U.S. Department of Justice has clarified that developers creating decentralized cryptocurrency platforms without criminal intent will no longer be targeted under money transmission laws. Acting Assistant Attorney General Matthew Galeotti delivered this message while speaking at a crypto policy summit in Wyoming.
A Clearer Legal Threshold
Galeotti emphasized that “merely writing code, without ill intent, is not a crime.” He urged prosecutors to avoid charging developers unless there is direct evidence that they intentionally facilitated illegal activities such as fraud, money laundering, or sanctions evasion.
Further, he urged that where software genuinely functions in a decentralized manner—automating peer-to-peer transactions without custodial control—the Justice Department will not press charges under statutes related to unlicensed money transmission.
A Break from the Past
This move marks a departure from prior enforcement approaches that interpreted money transmitter laws broadly, sometimes targeting decentralized platforms and developers for user actions beyond their control. The change aligns with an April directive from Deputy Attorney General Todd Blanche to end the so-called “regulation by prosecution” of digital asset platforms.
Context and Industry Response
The policy shift comes in the wake of the Tornado Cash case, where a co-founder was convicted on unlicensed money transmission charges. Many in the industry had argued that writers of code, without intent to break the law, should not be held liable—a perspective now echoed by the DOJ.
Reaction from the crypto community has been overwhelmingly positive. Advocates say this clarification removes substantial legal ambiguity and paves the way for safer innovation in decentralized finance.
Why This Matters
- Protects Neutral Developers: Individuals building decentralized networks, wallets, or tools can now operate with reduced fear of prosecution when their intent is honest and non-malicious.
- Draws the Line on Intent: The policy underscores that liability rests on intentional wrongdoing—not on merely creating infrastructure that users might misuse.
- Regulatory Rebalancing: With the dissolution of the DOJ’s crypto enforcement team, resources are being redirected toward prosecuting actual criminal use cases, such as fraud or financial crimes.
In essence, the DOJ’s newly articulated stance signifies a pivotal change in U.S. crypto regulation—from penalizing innovation to safeguarding it—while still holding accountable those who deliberately facilitate illicit activities.
