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The advocacy group Coin Center has declared that the development of cryptocurrency software is protected under the First Amendment of the U.S. Constitution, which guarantees freedom of speech and expression. Advocates argue that the release of software code is akin to delivering a public speech or publishing a book.
Coin Center’s Executive Director Peter Van Valkenburgh and Research Director Lizandro Pieper contend that creators of cryptocurrencies and crypto mixers should not be held accountable for the manner in which their innovations are utilized.
“Developers are inventors, not agents, custodians of funds, or fiduciaries. If developers are required to pre-register or obtain a license for their speech activities, it undermines the rationale of financial oversight. This oversight effectively restricts speech and expression, which contradicts the Constitution,” stated the executives of Coin Center.
They elaborated that the activities of developers should be regulated only when they manage user assets, conduct transactions, or make decisions on behalf of users.
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Coin Center referenced a 1985 case in which the U.S. Securities and Exchange Commission (SEC) sued investment advisor Christopher Lowe. Ultimately, the U.S. Supreme Court ruled that the SEC could not prohibit Lowe, who faced fraud allegations, from publishing general financial advice.
The court concluded that providing investment advice to the general public does not fall under the definition of investment advisor activities, and such speakers are protected by the First Amendment of the U.S. Constitution. This implies that the SEC cannot mandate licensing for the publication of financial news and analysis intended for a broad audience, even if the author of such content has a questionable reputation.
“In the computer age, software is the primary medium for expressing ideas. Writing and publishing code constitutes speech. In a free society, speech cannot be licensed to silence individuals,” representatives of Coin Center asserted.
In August of the previous year, a court in the Southern District of New York found Tornado Cash developer Roman Storm guilty of operating an unlicensed money transfer service. His attorneys filed a motion to dismiss the lawsuit, arguing that their client had no intention of engaging in violations of international sanctions or money laundering through the crypto mixer.
