DOJ Shifts Crypto Enforcement Focus to Criminal Intent

The U.S. Department of Justice (DOJ) has revised its legal approach toward cryptocurrency developers, marking a significant shift in enforcement priorities. During the American Innovation Project summit in Wyoming, Matthew Galeotti, Acting Assistant Attorney General at the DOJ, clarified that writing code without criminal intent will no longer be prosecuted. This marks a departure from the DOJ’s previous stance, which led to high-profile cases such as the conviction of Roman Storm, co-founder of Tornado Cash [1].

Galeotti emphasized that the DOJ’s focus will now be on intent-driven criminal activity, signaling a more targeted approach to enforcement. “The department will not use indictments as a lawmaking tool. The department should not leave innovators guessing as to what could lead to criminal prosecution,” Galeotti stated [1]. This policy shift aims to reduce legal uncertainty for developers and promote innovation in the cryptocurrency space.

The revised policy is expected to impact the crypto industry significantly, particularly software developers working on decentralized protocols. Developers now face reduced legal risks, enabling them to build and innovate without fear of indiscriminate prosecution. The DOJ’s stance may also stabilize investor sentiment in decentralized finance (DeFi) projects, as legal clarity helps reduce regulatory uncertainties for both developers and investors.

The announcement has been welcomed as a step toward better regulatory clarity. However, industry participants continue to call for more permanent legislative reforms to ensure long-term protection. While the DOJ’s policy may serve as a foundation for future legal frameworks, advocates stress that broader legislative action is necessary to address the unique challenges of the crypto space [1].

Historically, the DOJ has taken a broad approach to crypto enforcement, as seen in its sanctions against Tornado Cash. The revised policy indicates a recognition of the need for more nuanced and targeted enforcement, particularly in a rapidly evolving technological landscape. As the DOJ shifts its focus to intent-based prosecutions, it sends a message of support to the innovation-driven crypto community while maintaining a firm stance against malicious actors.

Source: [1] DOJ Revises Policy on Crypto Developers (https://coinmarketcap.com/community/articles/68a7ed94c6350b48923beb55/)