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DOJ Narrows Crypto Cases, Declares Writing Code Without Ill Intent Is Not a Crime

The guidance pulls back on new money‑transmitter charges for truly decentralized, non‑custodial software, leaving recent convictions and appeals unresolved.

Overview

  • Acting AAG Matthew Galeotti told a Wyoming audience that prosecutors will not target developers solely for publishing open‑source code without specific criminal intent.
  • New 18 U.S.C. 1960(b)(1)(C) charges will not be approved where software is truly decentralized, automates peer‑to‑peer transactions, and involves no third‑party custody or control.
  • The Criminal Division said it will continue to pursue fraud, money laundering, sanctions evasion, and cases where evidence shows a developer intended to facilitate crimes.
  • Galeotti’s remarks build on April guidance from Deputy AG Todd Blanche and follow the disbanding of the DOJ’s crypto enforcement team after years of aggressive district‑level cases.
  • Industry figures praised the shift as a win for developers, while legal advocates questioned its practical reach and whether it will affect Roman Storm’s recent conviction on appeal.