The US Department of Justice (DOJ) says it will no longer target developers who create decentralized crypto platforms without criminal intent. According to acting Assistant Attorney General Matthew Galeotti of the DOJ’s criminal division, the department will move away from bringing charges over failure to register as a money transmitter business.
“Our view is that merely writing code, without ill intent, is not a crime,” Galeotti said in remarks prepared for a crypto summit in Wyoming. For context, money transmitters, such as Western Union and payment apps like Venmo, need to be licensed and follow certain rules for vetting customers and reporting suspicious activity to prevent money laundering. Galeotti went on to add, “If a developer merely contributes code to an open source project without the specific intent to assist criminal conduct, aid or abet a particular crime, or join a criminal conspiracy, [they] are not criminally liable.”
US DOJ Continues Pro-Crypto Shift
The Department of Justice has transformed its policies on cryptocurrency for the better in the past year, mostly due to the return of pro-crypto President Donald Trump to the White House. The developments have lit a fire under the crypto industry, weakening regulation on an industry previously regulated with an iron fist.
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Just last month, the DOJ dropped a notable lawsuit and investigation into crypto developer Tornado Cash. The lawsuit against Tornado Cash was expected to eventually drop after the US Treasury Department removed Tornado Cash’s sanctions earlier this year. The US government as a whole has also become far crypto crypto-friendlier. The Justice Department has disbanded its crypto enforcement team, and the SEC has dropped a number of cases against crypto firms and executives, from Kraken to Ripple Labs.
The global crypto market is down today, but the DOJ’s announcement on not targeting crypto platform developers may prove to be a bullish catalyst for the market. The crypto market has fallen 1.81% in 24 hours, extending an 8.65% weekly decline. More transparent legislation could send assets like Bitcoin, XRP, and ETH higher.