The U.S. Justice Department announces a new approach to prosecuting developers of decentralized financial platforms.
Justice Department's Statement on Developers
Acting Assistant Attorney General Matthew Galeotti stated that the Justice Department will not initiate criminal cases against software developers creating decentralized platforms if there is no criminal intent. 'Our view is that merely writing code, without ill intent, is not a crime,' he noted at the American Innovation Project Summit in Jackson, Wyoming.
Regulations for Money Transmitters
Money transmitters, such as Western Union, and payment apps like Venmo are required to have licenses and follow certain rules for vetting customers and reporting suspicious activity to prevent money laundering. These regulations have become a flashpoint for the crypto sector, particularly for decentralized exchanges, which often claim they have no visibility or oversight over transactions on their platforms.
Roman Storm Case and Its Implications
Earlier in July, a jury found Tornado Cash co-founder Roman Storm guilty of conspiracy to operate an unlicensed money transmitting business. Anti-corruption advocates say such firms make it easier to launder illicit funds. Roman stated in his defense that he merely created computer code. The jury was deadlocked on whether he was guilty of money laundering and sanctions evasion.
The announcement from the U.S. Justice Department signifies a shift in regulation, creating a more accommodating environment for cryptocurrency assets and software developers.
