DOJ Gives Crypto Developers Legal Clarity on Code and Criminal Intent

The U.S. Department of Justice (DOJ) has signaled a marked shift in its approach to enforcing laws against developers of decentralized cryptocurrency platforms, emphasizing that writing code without ill intent is not a crime. In a statement delivered by Acting Assistant Attorney General Matthew Galeotti during a crypto summit in Wyoming, the DOJ announced it would no longer pursue criminal charges against software developers for failure to register as money transmitters, provided they have no criminal intent [1]. This marks a departure from previous enforcement strategies, particularly those targeting the crypto sector under the Biden administration [1].

Galeotti’s remarks, delivered as part of a broader policy adjustment under the Trump administration, emphasized that the DOJ would not use criminal statutes to impose a de facto regulatory regime on the digital asset industry [2]. The department also reiterated that it would not employ indictments as a lawmaking tool, a move aimed at providing clarity to developers who have long criticized the lack of legal certainty in crypto enforcement [2]. Galeotti highlighted that the DOJ would continue to pursue prosecutions of bad actors who exploit technology for criminal purposes, including money laundering and sanctions evasion [2].

The DOJ’s new stance is expected to have implications for the ongoing legal case of Roman Storm, co-founder of Tornado Cash, a privacy-preserving cryptocurrency mixing protocol. Storm was recently convicted on a single count of conspiracy to operate an unlicensed money transmitting business, but a jury deadlocked on more severe charges of money laundering and sanctions evasion [3]. Galeotti stated that the DOJ would not bring new charges under the money transmitter statute in cases where evidence shows the software is truly decentralized and merely automates peer-to-peer transactions [4]. This clarification appears to align with the concerns raised by developers who argue they should not be held liable for the misuse of their tools by third parties [5].

The announcement coincided with the disbanding of the DOJ’s national cryptocurrency enforcement team, a decision that reflects the broader regulatory shift toward a more accommodating environment for digital assets [5]. Galeotti emphasized that the DOJ’s approach aims to foster innovation in the crypto industry while ensuring that those who knowingly facilitate or assist in criminal activity remain accountable [6]. He also reiterated that the DOJ would not pursue criminal liability for developers who merely contribute code to open-source projects without specific intent to support criminal activity [6].

Industry stakeholders, including advocacy groups such as the DeFi Education Fund, welcomed the DOJ’s statement as a step toward legal clarity and protection for software developers [2]. The new policy is also seen as a response to ongoing legislative efforts in Congress to include protections for crypto developers in the broader market structure bill [2]. While the DOJ’s stance appears to provide relief for developers of neutral tools, it does not absolve those who knowingly enable or participate in illicit activities [6].

The updated enforcement guidelines from the DOJ are expected to influence future legal strategies in the crypto space, particularly in how the department handles cases involving decentralized platforms and open-source projects [6]. As the digital asset industry continues to evolve, the DOJ’s position reflects a growing recognition of the need to balance innovation with regulatory oversight.

Source:

[1] title1 (https://www.reuters.com/sustainability/boards-policy-regulation/us-doj-back-off-money-transmitter-cases-shift-backed-by-crypto-2025-08-21/)

[2] title2 (https://www.coindesk.com/policy/2025/08/21/u-s-justice-department-official-says-writing-code-without-bad-intent-not-a-crime)

[3] title3 (https://www.mitrade.com/insights/news/live-news/article-3-1059724-20250822)

[4] title4 (https://cointelegraph.com/news/justice-department-policies-writing-code-roman-storm-retrial)

[5] title5 (https://www.benzinga.com/crypto/cryptocurrency/25/08/47274696/weeks-after-tornado-cashs-co-founder-conviction-doj-official-says-well-intentioned-developers-not-liable-for-third-party-abuse)

[6] title6 (https://www.justice.gov/opa/speech/acting-assistant-attorney-general-matthew-r-galeotti-delivers-remarks-american)