In a significant announcement that could reshape the landscape for cryptocurrency developers, Matthew Galeotti, acting assistant attorney general in the U.S. Department of Justice’s criminal division, declared that writing code without malicious intent does not constitute a crime. Speaking at an event organized by the American Innovation Project in Wyoming, Galeotti addressed the simmering concerns among crypto enthusiasts about recent convictions of developers, reassuring them of the DOJ’s stance against prosecuting software creators without evidence of criminal intent.
Clarity Amidst Legal Uncertainty
The crypto community, particularly developers, has been on edge following recent high-profile cases. Tornado Cash developer Roman Storm’s conviction for running an unlawful money transmitting business sent shockwaves through the industry, highlighting the potential legal pitfalls for developers. Similarly, the Samourai Wallet team faced charges, albeit reduced, that had many questioning the regulatory landscape they operate within. This follows broader regulatory shifts, such as the U.S. Fed Officially Scrapping a Specialist Group Meant to Oversee Crypto Issues, which adds to the uncertainty developers face.
Galeotti made it clear that the Justice Department does not intend to use federal criminal statutes as a makeshift regulatory framework for digital assets. “The department will not use indictments as a lawmaking tool,” he emphasized, eliciting a positive response from the audience. His assurance that “merely writing code without ill intent is not a crime” was a nod to the developers who fear being caught in the crosshairs of legal battles.
A Shift in Legal Strategy
This announcement aligns with a broader shift in DOJ strategy, marked by an April memo from Deputy Attorney General Todd Blanche. The memo, a remnant of the Trump administration’s regulatory pullback, signaled the disbandment of the national cryptocurrency enforcement team. Despite this, the Southern District of New York pursued cases against developers like Storm and the Samourai Wallet team, creating a dichotomy within the DOJ’s approach.
Galeotti’s remarks shed light on a more restrained prosecutorial approach. He stated that charges would not be pursued under existing criminal codes if the software is decentralized, automating peer-to-peer transactions without third-party custody of user assets. This nuanced understanding of decentralized technology and its implications could safeguard developers from unwarranted legal trouble.
Industry Reactions and Legislative Implications
The announcement reverberated across the industry, with many seeing it as a step toward recognizing the unique challenges faced by crypto developers. Amanda Tuminelli, executive director of the DeFi Education Fund, hailed the statement as a validation of long-standing advocacy efforts. “Let’s celebrate this as a moment of progress,” she remarked, while acknowledging the ongoing need for legislative change to solidify these protections. This sentiment is echoed by initiatives like the Coinbase, DCG, Kraken, Other Crypto Lobbyists Unveiling a Tax-Exempt ‘Education’ Nonprofit, which aims to foster understanding and support for the crypto industry.
The significance of these developments extends to Capitol Hill, where crypto market structure legislation is making its way through Congress. The inclusion of developer protections in the proposed laws underscores the industry’s lobbying efforts and the growing recognition of developers’ roles. However, as Tuminelli pointed out, the final outcome in the Senate remains to be seen.
Looking Ahead
Galeotti’s assurances offer a glimmer of hope for developers wary of legal repercussions, but they also highlight the complexities of navigating a still-evolving regulatory landscape. With the DOJ’s pledge not to prosecute well-intentioned developers, there’s cautious optimism among industry stakeholders. However, questions linger about the consistency of this approach across various jurisdictions and future administrations.
As the crypto world continues to evolve, the balance between innovation and regulation remains delicate. While Galeotti’s comments mark progress, the road ahead will require ongoing dialogue between developers, regulators, and lawmakers to ensure that innovation is not stifled by fear of prosecution. The coming months could see further developments, as the crypto community watches closely how these assurances translate into practice.
Source
This article is based on: U.S. Justice Department Official Says Writing Code Without Bad Intent ‘Not a Crime’
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
