DeFi Education Fund has ramped up efforts to reform the legal framework for US blockchain developers. In a letter to crypto czar David Sacks, they urged President Trump to halt the DOJ’s prosecutions. Their plea highlighted Roman Storm’s case, a Tornado Cash developer accused of laundering over one billion dollars in cryptocurrency. The organization warned that these prosecutions threaten innovation and set dangerous legal precedents. They urged swift action to protect developers and foster ongoing blockchain progress. Their campaign reflects growing industry concern over restrictive legal actions affecting open-source software creators.
Is Roman Storm’s Prosecution a Major Concern for Developers?
The prosecution of Roman Storm has garnered significant attention for its impact on free speech and innovation. Storm maintains his innocence and says the indictment breaches First Amendment rights. Scheduled for mid-July, his trial becomes a pivotal moment for the crypto community. A letter from DeFi Education argues that punishing open-source development is irrational and unfair. Such legal efforts could discourage developers from creating cutting-edge technology in the United States. Observers worry these charges could set a dangerous precedent for future innovation. If unchallenged, these prosecutions threaten software progress and free expression nationwide.
Tornado Cash became a focal point after OFAC sanctioned it as a decentralized mixer in 2022. U.S. Treasury claimed the Lazarus hacking group laundered $455 million through it. Critics compare prosecuting open-source developers to blaming tool creators for others’ crimes. The DeFi Education Fund warns that such legal actions overlook important distinctions. Observers fear that broad interpretations by prosecutors threaten free software development and decentralization benefits.
What Risks Await if Regulations Remain Unchanged?
On X, the DeFi Education Fund reminded President Trump of his administration’s famously crypto-friendly policies. It cited FinCEN guidance from the first Trump crypto era that excluded peer-to-peer developers from money transmitter rules. That stance encouraged many blockchain innovators to work openly across sectors in the United States. The Fund warns that without Trump’s action to halt Biden-era DOJ prosecutions, his goal could remain out of reach. It reminded him that failing to intervene could undermine efforts to position the U.S. as the leading crypto hub.
1/ Today, DEF is pleased to launch a petition calling on the Trump administration to END the lawless prosecution of software developers in the U.S. https://t.co/fFMiXlV0Un
— DeFi Education Fund (@fund_defi) April 28, 2025
The petition repeatedly warns that the United States risks losing its global blockchain leadership without swift reform. Advocates argue that the current regulatory environment not only chills but freezes innovation entirely. Proponents of Trump crypto highlight his earlier strategic Bitcoin reserve as a solid foundation for growth. Without immediate legal clarity, American developers risk moving offshore in search of stability. Such an exodus would damage America’s competitive edge in blockchain technology. Stakeholders urge swift reforms.
What Legal Protections Do Blockchain Developers Need Today?
In January, a Texas federal court found Treasury sanctions on Tornado Cash unlawful. The judge concluded that the Treasury overstepped its authority with those sanctions. This decision strengthens the petition’s call for reforms. Prominent crypto advocates like Fred Ehrsam and Tim Beiko have endorsed the plea. They argue there is no legal justification for penalizing developers of decentralized protocols. They warn that ongoing prosecutions could undermine innovation and cause significant harm to the blockchain community.
Since assuming office, Trump’s policies have been going towards enhancing the digital asset space. Trump issued executive orders to bolster the nation’s crypto infrastructure, including plans for a strategic digital asset reserve. These efforts demonstrate a strong commitment to incorporating blockchain technology into broader economic policy. The DeFi Education Fund applauds these measures but warns they lack impact if developers face legal risks. Ensuring software creators’ protection is crucial for realizing the ambitious visions championed by Trump crypto supporters.
Could This Be a Turning Point for American Crypto Policy?
The situation demands urgent attention from policymakers, industry participants, and crypto enthusiasts. In their letter, the Fund urged President Trump to safeguard American developers, clarify legal frameworks, and end DOJ overreach. They emphasized crypto innovation’s vital role in preserving U.S. technological leadership and global competitiveness. As more people endorse the petition, the crypto community watches closely for the administration’s next move. Stakeholders hope that a decisive response will protect developer rights and encourage broader innovation. The outcome may cement Trump’s legacy as a blockchain champion or cast doubt on America’s crypto future.
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