Blockchain developers receive legal backing in the U.S. after clarification from the Department of Justice.

The U.S. Department of Justice clarifies that creating cryptographic code without malicious intent will not be a crime. These statements aim to strengthen legal protections for developers and encourage innovation in blockchain technology.

The federal agency has revamped its approach to cases involving cryptocurrency code development, adopting a clearer and more balanced approach, according to experts. 

Matthew Galeotti, the Department's acting deputy attorney general, explained that it is now recognized that creating cryptocurrency-related code, as long as there is no intent to commit a crime, will not be considered unlawful conduct.

Galeotti's statements reflect a significant evolution in how authorities are beginning to understand the role of blockchain developers, who will be able to continue innovating with greater confidence and without the worry of facing legal repercussions for others' use of their creations. 

DOJ supports developers: only criminal intent draws the line

During the event organized by the American Innovation Project in the state of Wyoming, Galeotti stressed a clear and fundamental distinction between the creation of crypto software and participation in illicit activities. 

From the Department's perspective, the focus is on Respect and protect those who develop decentralized platforms based on cryptocurrencies, as long as these technologies operate automatically, between users, without intermediaries controlling the funds. Furthermore, it's important that there are no connections to crimes such as money laundering. This way, the value of the developers is recognized, seen not as suspects but as innovators who bring useful tools to the digital ecosystem.

Several experts have commented that this more human and realistic approach can create a space where technology can flourish. without fear of unjust accusationsCriminal liability, Galeotti emphasized, arises only when there is malicious intent or misuse of these tools. 

Organizations such as the DeFi Education Fund and various groups advocating for blockchain developers have welcomed the Department of Justice's position as an important step toward protecting those who create neutral technological tools. Their stance emphasizes that third-party misuse of the software should not result in legal consequences for developers, thus promoting a more favorable environment for innovation and secure development.

Therefore, with this greater clarity, a fairer and more secure environment is emerging for cryptocurrency and blockchain innovation to continue growing worldwide.

The case of Tornado Cash and its founder Roman Storm

The change in stance by the Department of Justice (DOJ) on the development of cryptocurrency-related code has emerged in a very specific context, marked by the emblematic Treasury Department case against Tornado Cash and its developersTornado Cash is a platform that offers cryptocurrency mixing services to protect the privacy of transactions on the Ethereum network. However, in 2022, the Treasury Department sanctioned the platform, alleging it was used to facilitate illicit transactions worth several billion dollars.

Although the charges against the Tornado Cash platform were dropped this year, legal actions against its developers, such as roman storm, co-founder and lead developer, remain in force. 

This month, Storm was found guilty in New York of operating an unlicensed money transmission business, although a split verdict was reached on charges related to money laundering and international sanctions violations. Despite the remaining unresolved charges, this conviction underscores the complexity of applying traditional laws to decentralized technologies.

Storm's case contrasts with the DOJ's new approach, which is now showing greater openness and reconsideration about how it regulates the development of cryptocurrency-related decentralized software. 

The recognition that decentralized code has its own characteristics, which do not fit easily into traditional financial rules, is leading to a rethinking of legal and regulatory strategies, in an attempt to balancing technological innovation with security and compliance concerns.

The end of the persecution of crypto developers?

In addition to the Tornado Cash case, another relevant episode in the legal persecution against crypto technology developers involves the creators of Samourai Wallet, Keonne Rodriguez and William Lonergan HillBoth faced similar charges for facilitating illicit transactions through their platform, which offered cryptocurrency mixing services to protect users' privacy. Prosecutors linked them to more than $2.000 billion in suspicious transactions, with at least $100 million related to illegal activities on the dark web.

Although they initially pleaded not guilty, Rodriguez and Hill were recently they decided to accept guilt on charges of operating an unlicensed money transmitting business and conspiracy to commit money laundering, marking a significant shift in his prosecution. This change coincides with the broader debate over the nature of decentralized software and the legal liability of its developers.

These landmark cases, involving both Tornado Cash and Samourai Wallet, highlight a turning point in crypto regulation. As authorities adjust their approach to distinguishing between illicit software and operations, the question arises: Are we witnessing the end of the indiscriminate persecution of crypto developers, or will legal pressure continue in a world seeking to balance innovation and compliance?

According to recent DOJ statements, the United States is seeking to the regulation is clear and specific, preventing court decisions from serving as implicit rules for blockchain technology and its applications. 

The Department of Justice has made it clear that it will not pursue blockchain software developers who create code without criminal intent, especially when it comes to decentralized and non-custodial projects. 

This new approach seeks to separate technological innovation from liability for third-party misuse of that software, opening up a space for the crypto industry to develop without fear of unfair legal retaliation. However, as mentioned, the authority will continue to pursue enforcement actions against obvious illicit conduct, thus balancing the protection of innovators with security and compliance.