Code Writers Get Legal Shield as DOJ Clarifies Stance on Crypto Tools

The U.S. Department of Justice (DOJ) has clarified that it will not pursue criminal charges against software developers who create decentralized platforms for transmitting cryptocurrencies, provided they lack criminal intent. This marks a significant shift in the DOJ's approach to the crypto industry, signaling greater legal clarity for developers amid ongoing regulatory uncertainty. Acting Assistant Attorney General Matthew Galeotti of the DOJ's criminal division made the announcement during a prepared speech at a crypto summit in Wyoming, emphasizing that "merely writing code, without ill-intent, is not a crime" [1].

The announcement comes as the Biden administration’s Manhattan U.S. attorney secured a high-profile conviction against Roman Storm, co-founder of Tornado Cash, a tool that enables users to obscure the trail of cryptocurrency transactions. Storm was found guilty of conspiracy to operate an unlicensed money transmitting business, but the jury deadlocked on whether he was guilty of money laundering and sanctions evasion [1]. Critics argue that prosecuting developers for the misuse of their tools sets a dangerous precedent, as it blurs the line between technical innovation and criminal liability. Galeotti addressed these concerns directly, stating that the DOJ would not use criminal statutes to impose a new regulatory framework on the digital asset industry [2].

Under the Trump administration, the DOJ has taken a markedly different stance from previous years. Earlier enforcement efforts had focused heavily on requiring crypto platforms to register as money transmitters, a process that many in the sector found burdensome and incompatible with the decentralized nature of blockchain technology. The department has since disbanded its National Cryptocurrency Enforcement Team, and the Securities and Exchange Commission has also withdrawn from several major cases against crypto firms [1]. Galeotti reiterated that the DOJ will not bring charges under the relevant money transmitter statute unless there is evidence that the defendant knowingly violated specific legal requirements [2].

The clarification appears to align with broader efforts by the Trump administration and industry advocates to foster a more innovation-friendly regulatory environment. Galeotti stated that the DOJ would refrain from pursuing charges in cases where software is genuinely decentralized and solely automates peer-to-peer transactions, with no third-party control over user assets [2]. This stance has been welcomed by industry groups, such as the DeFi Education Fund, which view it as a step toward protecting developers from disproportionate legal risks associated with the misuse of their tools [2]. Amanda Tuminelli, the group’s executive director, praised the DOJ’s position as an affirmation of long-standing industry advocacy efforts [2].

While the DOJ’s announcement provides reassurance to crypto developers, it is not a complete resolution to the sector’s regulatory challenges. The U.S. Congress is currently considering market structure legislation that includes protections for software developers, though the final version remains pending in the Senate. As the regulatory landscape continues to evolve, the DOJ’s stance may influence future legislative efforts to clarify the legal status of decentralized technologies [2].

Source: [1] US DOJ to back off money transmitter cases in shift backed by crypto (https://www.reuters.com/sustainability/boards-policy-regulation/us-doj-back-off-money-transmitter-cases-shift-backed-by-crypto-2025-08-21/) [2] U.S. Justice Department Official Says Writing Code Without ... (https://www.coindesk.com/policy/2025/08/21/u-s-justice-department-official-says-writing-code-without-bad-intent-not-a-crime) [3] The U.S. Justice Department does not plan to target ... (https://www.facebook.com/Reuters/posts/the-us-justice-department-does-not-plan-to-target-software-developers-that-creat/131****140757715/)