Main Points :
- DOJ confirms writing code without ill intent is not criminal under 18 U.S.C. § 1960.
- Applies to truly decentralized, peer-to-peer software with no third-party custody.
- DOJ will continue prosecuting intentional crimes like fraud, money laundering, and sanctions evasion.
- Signals a policy shift under the Trump administration—stepping back from “regulation by prosecution.”
- Offers critical legal clarity and reassurance to developers and innovators in the crypto and DeFi space.
1. A Turning Point: DOJ Affirms Innocence in Code Writing
Acting Assistant Attorney General Matthew Galeotti of the DOJ’s Criminal Division announced a landmark policy change: “merely writing code, without ill-intent, is not a crime.” This statement, made at a crypto-focused summit in Jackson, Wyoming, marks the DOJ’s clear intention to stop prosecuting software developers—particularly those behind decentralized tools—under money transmission laws when there’s no criminal intent involved.
2. Defining Safe Grounds: “Truly Decentralized” with No Custody
Crucially, the DOJ clarified this leniency applies only to software that is demonstrably truly decentralized, operates through automated peer-to-peer transactions, and does not allow any third party custody or control over user assets. Under these conditions, new charges under 18 U.S.C. § 1960(b)(1)(C) will not be approved .
3. A Prosecution of Intent, Not Innovation
Galeotti emphasized that developers are not immune if there’s mal-intent. The DOJ will continue to prosecute crimes like fraud, money laundering, sanctions evasion, and aiding or abetting such conduct. The critical legal distinction rests on specific criminal intent—without it, development activities, even of tools later misused, should not trigger criminal liability.
4. Policy Shift: From Regulation by Prosecution to Clear Boundaries
Supporting this stance is the April 2025 Blanche Memo, which directed federal prosecutors to avoid using criminal actions as regulatory tools. Galeotti’s speech reinforces that prosecution is not lawmaking, and regulatory frameworks belong to designated bodies—not the DOJ. This marks a shift, especially in light of recent enforcement actions under the previous administration.
5. Context: The Tornado Cash Precedent
The crypto community—including legal experts like Jake Chervinsky of Variant—welcomed the DOJ’s position as potentially paving the way for reconsideration of cases like Storm’s. Many praised the DOJ for providing long-overdue legal clarity, signaling a more balanced and transparent enforcement posture.
6. Community Response & Legal Implications
The crypto community—including legal experts like Jake Chervinsky of Variant—welcomed the DOJ’s position as potentially paving the way for reconsideration of cases like Storm’s. Many praised the DOJ for providing long-overdue legal clarity, signaling a more balanced and transparent enforcement posture .
7. Why This Matters for Innovation and DeFi Builders
This development removes a significant legal cloud hanging over DeFi developers and open-source contributors. By delineating a safe zone for innovation without malicious intent, the DOJ is encouraging U.S.-based blockchain innovation and potentially attracting more investment and talent domestically. Well-intended innovators, Galeotti assured, “do not have to fear for their liberty.”.
Summary
In essence, the U.S. Department of Justice has drawn a firm line: writing code without criminal intent—especially decentralized, peer-to-peer software with no custodial involvement—is not a crime. While enforcement against real criminal activity continues, this clarity empowers developers by removing the threat of unfair prosecution for merely creating open-source tools. This is a pivotal moment for the crypto and blockchain ecosystem—freedom for innovation, with accountability for abuse.
