The U.S. Department of Justice affirms it will not prosecute Web3 developers if users violate laws on their DeFi platform.
The Department of Justice will focus on addressing bad actors while protecting legitimate cryptocurrency developers, especially in decentralized and automated Web3 protocols.
MAIN CONTENT
Web3 developers will not be prosecuted if the software is truly decentralized and does not control user assets.
The U.S. Department of Justice emphasizes it will eliminate bad actors and support fair development in the cryptocurrency space.
The new stance may impact the legal handling of developers like Tornado Cash.
How does the U.S. Department of Justice want to protect Web3 developers?
The U.S. Department of Justice announces it will not prosecute Web3 developers if the software they create is truly decentralized and automates peer-to-peer transactions.
Matthew Galeotti, Acting Assistant Attorney General of the U.S. Department of Justice, states: "If evidence shows that the software is completely decentralized, and a third party does not manage user assets, then there is no basis for prosecuting the third party." This is an important step, providing reassurance to developers in the DeFi space.
Focusing on eliminating bad behavior instead of applying mass prosecution will contribute to the transparent and sustainable development of the cryptocurrency industry, especially the rapidly evolving Web3 protocols globally.
How does the new DOJ stance affect the founder of Tornado Cash?
The U.S. Department of Justice made this statement after the co-founder of Tornado Cash – Roma Storm, was convicted of operating an unlicensed money transfer model to aid money laundering.
Although Roma Storm is preparing to appeal, cryptocurrency experts believe that simply writing code is not a criminal act, and online privacy is a fundamental right.
The Department of Justice's stance is seen as a strong affirmation that developing open, decentralized software should not be viewed as a violation of law, playing a key role in encouraging the mainstream development of Web3 protocols.
"Crypto and open-source developers in the U.S. have faced skepticism for a long time. That uncertainty ends today with a clear statement from the Department of Justice that writing and releasing code is not a crime."
Katie Biber, Legal Director of Paradigm, 2024
Is the U.S. Department of Justice changing its overall management of the cryptocurrency industry?
The Department of Justice's statement reflects an end to the excessive use of legal power to regulate the cryptocurrency industry through prosecuting developers.
Instead, the Department focuses on addressing criminal behavior directly related to bad actors while recognizing the natural demand for Web3 protocols and cryptocurrency assets in modern social contexts.
This perspective helps balance protecting technological innovation and ensuring market safety, thereby facilitating healthy development of the cryptocurrency sector in the United States.
Frequently Asked Questions
Will the Department of Justice prosecute Web3 developers when users violate the law?
The Department of Justice affirms that it will not prosecute developers when the software is decentralized and does not control user assets, focusing on addressing individual violators.
How does the Department of Justice's stance affect DeFi platforms?
This stance provides reassurance to developers, helping to promote the transparent and sustainable development of decentralized DeFi platforms.
Why is the Tornado Cash case controversial within the cryptocurrency community?
The founder of Tornado Cash was convicted for aiding money laundering, but many experts oppose treating coding as a crime.
Is the U.S. Department of Justice changing its approach to cryptocurrency?
Yes, the Department shifts its focus to eliminating bad actors, protecting legitimate developers, and avoiding mass prosecution.
What does Katie Biber's message mean for the cryptocurrency industry?
The statement emphasizes that developing open source is not a crime, presenting a positive challenge to cryptocurrency policy.
Source: https://tintucbitcoin.com/defi-developers-chi-bi-truy-to-co-toi/
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