DOJ Shifts Policy Emphasizing Developer Intent Over Code

The U.S. Department of Justice (DOJ) has signaled a significant shift in its approach to prosecuting software developers who create decentralized platforms, emphasizing that those acting in good faith and without criminal intent will not face legal consequences [1]. Acting Assistant Attorney General Matthew Galeotti, addressing a digital assets summit in Wyoming, stated that “merely writing code, without ill-intent, is not a crime,” and reiterated that the DOJ will not pursue developers who fail to register as money transmitters if they lack the means or intent to control user funds [2]. This marks a departure from previous enforcement actions, including the high-profile case against Roman Storm, a co-founder of the privacy-focused Tornado Cash protocol, where prosecutors argued that the service enabled illicit finance [3].

Galeotti clarified that future prosecutions will hinge on evidence of criminal intent, such as knowingly facilitating fraud, money laundering, or sanctions evasion. The DOJ will not use statutes prohibiting unlicensed money transmission against developers unless they are found to have knowingly broken the law. “Innovating new ways for the economy to store and transmit value and create wealth, without ill-intent, is not a crime,” he said [4].

The announcement reflects a growing recognition that decentralized platforms operate differently from traditional financial intermediaries like PayPal or Cash App, which are required to obtain licenses and comply with anti-money laundering (AML) obligations. Decentralized exchanges argue that they lack the ability to monitor or control user transactions, a key requirement for licensed money transmitters [5]. This distinction has become a central point of debate in crypto policy, with developers long seeking clarity on their legal exposure for creating open-source software.

Crypto advocates have welcomed the DOJ’s updated stance as a step toward a more predictable regulatory environment. By focusing on intent rather than technical classification, prosecutors are removing a major legal uncertainty that had discouraged innovation in decentralized finance [6]. However, anti-money laundering groups have raised concerns that the policy may allow privacy tools and decentralized protocols to be exploited for large-scale criminal activity if left unchecked.

The policy shift also highlights the DOJ’s broader enforcement priorities, including targeting fraud, Ponzi schemes, and China-based laundering networks, while distancing itself from past actions that drew criticism for being overly broad. The move is part of a larger trend in Washington toward refining regulatory approaches to accommodate the unique nature of blockchain technology [7].

Sources:

[1] 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)

[2] DOJ Provides Legal Clarity for Truly Decentralized Crypto ... (https://www.ainvest.com/news/doj-legal-clarity-decentralized-crypto-software-2508/)

[3] Justice Clarifies: Code Without Criminal Intent Isn’t a Crime (https://www.ainvest.com/news/justice-clarifies-code-criminal-intent-isn-crime-2508/)

[4] DOJ Paves Way for Decentralized Crypto With Major Win ... (https://news.bitcoin.com/doj-paves-way-for-decentralized-crypto-with-major-win-for-open-source-devs/)

[5] Decentralized Coding Shielded From DOJ Action If In Good ... (https://cryptonews.com/news/decentralized-coding-shielded-from-doj-action-if-in-good-faith/)

[6] US DOJ to back off money transmitter cases in shift backed by ... (https://ca.news.yahoo.com/us-doj-back-off-money-183819927.html)

[7] U.S. Department of Justice, Digital Assets Summit, Wyoming (https://www.justice.gov)