A coalition of crypto groups has filed a lawsuit against the US Department of Justice, arguing that the work of software developers should not fall under money transmission laws.
Coalition of Crypto Groups and Filing of the Lawsuit
Crypto investment firm Paradigm, along with other groups such as the DeFi Education Fund and Blockchain Association, filed an amicus brief supporting Michael Lewellen in Lewellen v. Bondi. Lewellen is a developer who created a non-custodial DeFi protocol and plans to release it publicly.
Criticism of DOJ's Position
The coalition argues that the DOJ is misusing Section 1960 of the US Code, originally intended to regulate unlicensed money transmitters. "The Government is actively prosecuting multiple developers of peer-to-peer cryptocurrency software, even if those developers simply publish open-source software," the filing states. The DOJ's approach has been criticized for creating legal uncertainty that may drive innovation offshore.
Coin Center's Lawsuit Against US Treasury
Recently, the US Court of Appeals for the Eleventh Circuit dismissed Coin Center's lawsuit against the US Treasury regarding sanctions on Tornado Cash. The dismissal was reached through a joint agreement between Coin Center and the Treasury, effectively ending the legal challenge.
The filing by crypto groups highlights the need for legal clarity for software developers in the US, where existing laws may impede innovation.
