The DOJ declares that blockchain developers will not face prosecution
16:15 ▪ 5 min read ▪
Stay informed▪Crypto regulation
A senior official from the U.S. Department of Justice (DOJ) has sparked a new regulatory debate on cryptocurrencies after stating that the department will not prosecute blockchain software developers who do not have criminal intentions. As expected, this statement has provoked mixed reactions from different sectors of the cryptosphere.
In summary
The DOJ confirms that blockchain software developers will not face charges if the projects are decentralized and non-custodial.
Galeotti stated that the DOJ will not use charges as a substitute for new crypto laws or regulatory frameworks.
The change comes after the high-profile conviction of Tornado Cash developer, Roman Storm.
Industry leaders welcomed the measure, considering it a victory for crypto innovation and decentralized finance.
The DOJ limits the use of 1960(b)(1)(C) against blockchain developers
Matthew Galeotti, acting head of the DOJ's criminal division, made these comments while speaking with pro-crypto groups and industry leaders during an event organized by the American Innovation Project. At the policy summit held on Thursday in Jackson Hole, Wyoming, Galeotti explained that charges under 1960(b)(1)(C) will no longer be used against blockchain software builders.
Under U.S. Code 1960(b)(1)(C), unlicensed money transmitting businesses are prohibited from conducting transactions linked to crimes or illegal activities. Violating the code carries a penalty of up to five years of federal prison.
