The U.S. Justice Department has announced a major shift in how it views cryptocurrency developers. Matthew Galeotti, a top official in the department’s Criminal Division, declared on Thursday that “writing code without bad intentions is not a crime.” This statement suggests a less harsh approach from the government toward the crypto industry.
This new stance offers a sigh of relief for many in the crypto world. It comes after a period where developers faced serious legal troubles. Galeotti pointed directly to federal laws used in cases like that of Roman Storm. Storm, a developer for Tornado Cash, was found guilty earlier this month in New York. His conviction was for running an unlicensed money transmission business.
The U.S. Treasury Department had previously sanctioned Tornado Cash in 2022. They claimed the crypto mixer helped North Korean hackers launder billions of dollars. While that sanction was lifted this year, the charges against the developers stayed.
Galeotti explained that the Justice Department will not use the specific law (18 U.S.C. 1960) against developers of “truly decentralized” software. This means platforms that automate peer-to-peer transactions without any single person or group controlling user funds. However, he warned that other charges could still apply if criminal intent is present.
The department is also being careful after the Samourai Wallet developers took a plea deal. They admitted to conspiring to operate an unlicensed money transmission business. This was a less severe charge than they originally faced.
Galeotti made it clear that the Justice Department won’t use accusations to create new laws. He referred to a memo from April issued by Deputy Attorney General Todd Blanche. This memo disbanded the national crypto enforcement team. It promised a less punitive approach under Donald Trump’s administration.
The memo stated that the department would avoid lawsuits or charges that step on the toes of “regulatory frameworks on digital assets.” It said that “President Trump’s actual regulators” should handle this work outside the criminal justice system. Galeotti concluded that “developers of neutral tools without criminal intent should not be responsible for misuse by third parties.” This aligns with efforts in Congress to protect software creators in the blockchain space.
The crypto industry welcomed Galeotti’s words as a step forward. Yet, groups like the DeFi Education Fund reminded everyone that permanent laws are still needed to truly protect innovators.