The US Department of Justice (DOJ) is signaling a potential shift in how it enforces laws related to digital assets, including cryptocurrencies and NFTs.
US DOJ Official Indicates Change in Crypto Enforcement Policy
At a recent summit organized by the American Innovation Project, Matthew Galeotti, acting assistant attorney general for the DOJ’s criminal division, emphasized a move toward more balanced enforcement in the crypto space.
Galeotti highlighted that merely writing code without malicious intent should not be criminalized, hinting at a nuanced approach to blockchain innovation. He stated, “Our view is that merely writing code, without ill intent, is not a crime,” underscoring the department’s stance against overregulation.
This statement comes amid ongoing legal proceedings involving Tornado Cash co-founder Roman Storm, who was found guilty on one felony count related to unlicensed money transmission. The jury deadlocked on other charges, leaving his future legal status uncertain.
Storm's case highlights broader questions about the legality of open-source code contributions in the crypto industry. Supporters argue that “writing code is not a crime,” especially when transactions are decentralized and automated. Galeotti echoed this view during his remarks, suggesting that new charges will be unlikely if software operates peer-to-peer without third-party custody.
The DOJ’s recent comments suggest it may adopt a more cautious stance on prosecuting blockchain developers involved in decentralized projects. Galeotti clarified that “where the evidence shows software is truly decentralized and solely automates peer-to-peer transactions,” prosecutors are less likely to pursue charges.
Despite this, Storm remains in legal jeopardy, facing charges of conspiracy to commit money laundering and sanctions violations. His conviction on one count may lead to sentencing soon, but the outcome remains uncertain amid ongoing debates about regulation and compliance in crypto ecosystems.
The broader implications for cefi platforms and NFT projects are significant, as legal clarity around code development could foster more innovation without fear of criminal prosecution. The DOJ’s evolving approach might encourage compliance while safeguarding against illicit activities in digital asset markets.
In conclusion, these developments highlight an important shift towards more nuanced regulation of cryptocurrencies and blockchain projects. Industry participants should closely monitor policy changes that could impact both legal risk management and future innovation strategies in the digital economy.
