Quick Highlights
- DOJ states writing code without malicious intent isn’t a crime.
- Policy change offers relief to crypto developers.
- Shift aligns with Trump administration’s regulatory approach.
DOJ Clarifies: Writing Code Without Malicious Intent Is Not a Crime
The U.S. Department of Justice has made a decisive statement that simply writing software code without malicious intent does not constitute a crime.
Acting Assistant Attorney General Matthew J. Galeotti announced this during an American Innovation Project event, emphasizing that developers creating decentralized solutions are legally protected if they do not intend to commit fraud or facilitate illegal activity.
Understanding the Legal Boundaries: What Developers Can and Cannot Do
Galeotti explained that the DOJ will continue to prosecute only intentional wrongdoing, such as fraud, money laundering, or sanctions evasion. However, under 18 U.S.C. § 1960, developers of decentralized applications who lack intent to commit crime will not face charges.
If software merely automates peer-to-peer transactions and developers do not control user assets, the DOJ will not pursue prosecution. Galeotti stated plainly:
This marks a major policy shift from prior aggressive prosecutions of blockchain projects, signaling a more developer-friendly approach to crypto regulation.
The announcement comes weeks after Tornado Cash co-founder Roman Storm was convicted for operating an unlicensed money transmitter. Legal experts like Jake Chervinsky, General Counsel at Variant Fund, suggested that the DOJ’s clarification could influence appeals or future cases:
This new stance reflects the current administration’s broader regulatory philosophy: criminal law will not be used as a regulatory tool in the digital asset industry. Specialized agencies are expected to handle oversight, while prosecutors focus on real crimes.
Why This Matters: Legal Clarity Could Fuel Innovation
By drawing a clear line between intentional wrongdoing and innocuous coding, the DOJ is providing certainty for crypto developers, DeFi platforms, and blockchain startups. This policy reduces the fear of prosecution for software creation and aligns with global trends toward more structured crypto regulation.
Observers note that such clarity could also influence international regulatory frameworks, as other countries look to balance innovation with oversight. The decision ensures that legitimate blockchain projects can operate without undue legal risk, fostering growth and experimentation in the digital asset ecosystem.
Source: https://coinpaper.com/10661/u-s-doj-says-writing-code-isn-t-a-crime-but-what-about-tornado-cash
