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The US Justice Department will not pursue legal action against software developers who create decentralized platforms for the transmission of cryptocurrencies without malicious intent, a senior official stated on Thursday.
Acting Assistant Attorney General Matthew Galeotti informed attendees at a digital assets summit in Wyoming that the act of writing computer code alone does not constitute a crime.
“Our perspective is that simply writing code, without any ill intent, is not a crime,” he remarked, noting that the agency is moving away from prosecuting developers who do not register as money transmitters.
Decentralized Exchanges Claim They Cannot Control User Transactions
Money transmitters, including PayPal and Cash App, are required to obtain licenses. They must also conduct customer due diligence and report any suspicious activities.
However, these requirements have become a contentious issue within the crypto industry. Decentralized exchanges contend that they are unable to fulfill such obligations due to their lack of oversight over transactions conducted on their platforms.
NEW: US DOJ’S ACTING AAG MATTHEW GALEOTTI SAYS “OUR VIEW IS THAT MERELY WRITING CODE, WITHOUT ILL INTENT, IS NOT A CRIME. INNOVATING NEW WAYS FOR THE ECONOMY TO STORE AND TRANSMIT VALUE AND CREATE WEALTH, WITHOUT ILL INTENT, IS NOT A CRIME”https://t.co/iyGVBr0BCZ
— DEGEN NEWS (@DegenerateNews) August 21, 2025
The discussion escalated after a New York jury recently found Roman Storm, a co-founder of Tornado Cash, guilty of conspiracy to run an unlicensed money transmitting operation.
Tornado Cash is a privacy-oriented service that complicates the traceability of cryptocurrency transactions. However, the jury was unable to reach a consensus on whether Storm was guilty of money laundering or evading sanctions.
Critics of the prosecution argued that Storm had merely written code, while prosecutors contended that the service facilitated illicit financial activities.
DOJ Commits to Targeting Fraud, Ponzi Schemes, and Laundering Networks
Galeotti emphasized that future prosecutions will necessitate clear evidence of criminal intent, which includes knowingly assisting in fraud, money laundering, or sanctions evasion.
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He also clarified that laws against unlicensed money transmission will not be applied to developers unless they knowingly violate the law.
“Innovating new ways for the economy to store and transmit value and create wealth, without ill intent, is not a crime,” Galeotti stated.
The Justice Department will continue to focus on malicious actors, he added, highlighting cases involving investment fraud, Ponzi schemes, and laundering networks based in China.
Prosecutors to Emphasize Intent Over Technical Classification in Crypto Cases
Galeotti underscored that the law is neutral regarding technology. While tools can be misused, he stated that those who misuse them should face prosecution. Developers acting in good faith should not be charged.
This also signifies a notable change in policy. During the Biden administration, federal prosecutors in Manhattan filed charges against Tornado Cash, while the SEC pursued various cases against crypto companies.
In contrast, the DOJ under President Donald Trump disbanded its crypto enforcement team and dropped several lawsuits against industry leaders.
This shift reflects an increasing acknowledgment in Washington that decentralized platforms function differently from traditional money transmitters.
Many developers had sought clarity regarding potential liability for releasing open-source software. In response, Galeotti indicated that these concerns had been acknowledged. He added that prosecutors would now prioritize intent over technical classification.
Crypto advocates welcomed these statements as a move toward clearer regulations, asserting that innovation should not be hindered by the fear of legal repercussions.
Conversely, anti-money laundering organizations cautioned that privacy tools and decentralized protocols could still facilitate large-scale criminal activities if not properly regulated.
The post DOJ Won’t Pursue Coders Who Build Decentralized Platforms in Good Faith appeared first on Cryptonews.
