The U.S. Department of Justice announced that it will no longer pursue charges against truly decentralized software developers under the unlicensed money transmission clause, bringing regulatory hope to DeFi, but the Roman Storm case remains an unresolved mystery. (Background: The U.S. Department of Justice plans to prosecute the investment shareholder of the mixer Tornado Cash, Dragonfly Capital) (Additional context: Tornado Cash co-founder Roman Storm reiterated that 'open source software is innocent,' and Vitalik supported: on-chain privacy is critically important) At the innovation project summit in Jackson Hole, Wyoming on August 21, Matthew Galeotti, acting head of the Criminal Division of the U.S. Department of Justice, announced that for 'truly decentralized, without third-party custody or control' software developers, the prosecution will no longer invoke the 'unlicensed money transmission business' clause under U.S. Code 1960(b)(1)(C) in the future. This statement is equivalent to lighting a guiding light for the decentralized finance (DeFi) world. The DOJ draws a new red line. Galeotti emphasized that the new policy aims to differentiate 'neutral tools' from 'criminal intent,' avoiding collateral damage to innovation due to the technology itself. His remarks echo a memorandum released in April encouraging prosecutors to handle cryptocurrency cases with caution, revealing that the Trump administration's law enforcement thinking has shifted from 'sweeping all' to 'precise strikes.' At the same time, this move is seen as drawing a safety boundary for open-source developers and privacy protocols, but it also leaves a caveat: if developers have obvious criminal intent, the Department of Justice can still prosecute under other charges. In other words, 'decentralized' and 'non-custodial' become compliance bottom lines, but not a guarantee of immunity. The shadow of the Roman Storm case. The catalyst for the policy shift was the controversial conviction of Tornado Cash co-founder Roman Storm weeks ago. A Manhattan jury in August found him guilty solely on the charge of 'unlicensed money transmission,' while all other money laundering and sanctions violation charges were dismissed. The legal community generally believes that this ruling broadens the definition of 'money transmission,' pulling non-custodial program developers into a high-risk zone. However, the DOJ's relaxation of law enforcement at this time feels 'too late' to the outside world. Amanda Tuminelli, executive director of the DeFi Education Fund, expressed support for the policy easing, stating publicly: the Department of Justice acknowledges that software developers should not be held responsible for third-party abuse of the program, validating our years of advocacy. Peter Van Valkenburg, executive director of the blockchain think tank Coin Center, regrettably pointed out on X that 'it seems too late for Roman' and questioned whether the prosecution would maintain its original position during the appeal phase. The industry welcomes but still retains doubts. After the news broke, most cryptocurrency lobbying groups and DeFi operators expressed their welcome. The market interprets this move as helping to release projects that developers had paused due to legal uncertainty, and it may attract new capital to reposition DeFi and privacy protocols. However, risk assessment consultants generally remind that the technical threshold for truly decentralized projects is high; if a project still has oracle managers or governance multisigs, it may not qualify for immunity. Furthermore, Galeotti did not provide a clear measure for 'criminal intent,' suggesting that practical operations will still rely on case-by-case judgment. Developers must weigh the spirit of open source against compliance pressures, and the market also needs to observe whether state financial regulatory agencies will follow suit in adjusting. Next observation points: The Roman Storm team has planned to appeal the conviction for 'unlicensed money transmission.' The outcome of the future second trial will become a litmus test for the credibility of the new policy. On the other hand, if the blockchain regulatory certainty bill being brewed in Congress can be implemented, it will provide a clear definition at the legislative level, reducing the reliance of law enforcement on prosecutorial interpretation. Overall, the DOJ's shift allows the DeFi industry to see signs of policy 'shifting from strict to precise,' also removing some shackles for tools seeking privacy protection. However, the legal fog has not completely lifted: the criteria for truly decentralized technology, the burden of proof for criminal intent, and the direction of Roman Storm's appeal will all influence the flow of the next wave of innovative energy. Related reports: From privacy evangelist to 'money laundering' defendant, Tornado Cash co-founder Roman Storm faces a fateful verdict. Is the turmoil surrounding the mixer Tornado Cash not over yet? Coinbase angrily criticizes: The U.S. Treasury's ambiguous handling avoids a final verdict. "DeFi Regulatory Dawn" U.S. Department of Justice: Will no longer prosecute decentralized software developers for 'unlicensed money transfers.' This article was first published on BlockTempo (the most influential blockchain news media).