DOJ Shifts Crypto enforcement Focus Away from developers
The U.S. Department of Justice has announced a change in policy towards developers in the crypto industry. This follows years of strict enforcement actions that have targeted many industry members.
Matthew Galeotti, the acting assistant attorney general, confirmed at the American Innovation Project summit that the DOJ will no longer prosecute software developers if their applications are misused by bad actors, provided that the developers had no criminal intent.
This shift responds to industry concerns regarding past cases involving platforms like Tornado cash and Samourai Wallet. Prosecutors previously charged thes teams with unlicensed money transmission and money laundering, treating open-source advancement as a financial crime.
Galeotti emphasized,”Writing code with no ill intent is not a crime.” The new policy ensures that developers who create decentralized and non-custodial software for peer-to-peer transactions will not face prosecution.
However, the DOJ will continue to target fraud, money laundering, sanctions evasion, and scams. Prosecutors will focus on proving intent rather than just punishing code publication.
This policy change offers relief to developers but leaves questions about past prosecutions. Cases like those of Tornado Cash and Samourai Wallet set precedents that stymied innovation. It’s unclear if the new stance will affect these earlier rulings, but it signals a move toward supporting well-meaning innovators.
