Key Takeaways
- DOJ clarifies that coding without malicious intent is not a violation of law.
- The policy modification benefits crypto developers.
- This change is consistent with the regulatory stance of the Trump administration.
DOJ Clarifies: Coding Without Malicious Intent Is Not a Crime
The U.S. Department of Justice has issued a clear statement affirming that writing software code without malicious intent does not break any laws.
Acting Assistant Attorney General Matthew J. Galeotti made this announcement at the American Innovation Project event, highlighting that developers of decentralized solutions are safeguarded legally when their intentions are not to defraud or engage in illicit activities.
Understanding the Legal Boundaries: What Developers Can and Cannot Do
Galeotti clarified that the DOJ will focus prosecution on intentional misconduct, including fraud, money laundering, and sanctions evasion. Under 18 U.S.C. § 1960, developers of decentralized applications lacking criminal intent will not be prosecuted.
The DOJ will not pursue charges if the software only facilitates peer-to-peer transactions without direct control over user assets. Galeotti stated explicitly:
“We believe that merely coding without malicious intent is not a crime.”
This indicates a significant policy shift from previous aggressive prosecutions of blockchain initiatives, promoting a more developer-friendly regulatory environment.
This announcement follows shortly after Tornado Cash co-founder Roman Storm’s conviction for being an unlicensed money transmitter. Legal professionals like Jake Chervinsky, General Counsel at Variant Fund, believe the DOJ’s clarification may impact appeals or upcoming cases:
This updated perspective aligns with the administration’s overarching regulatory ideology: criminal law will not serve as a regulatory mechanism within the digital asset sector. Oversight is expected to be managed by specialized agencies while prosecutors concentrate on addressing actual crimes.
Why This Matters: Legal Clarity Could Drive Innovation
By clearly distinguishing between deliberate wrongdoing and harmless coding, the DOJ is instilling confidence among crypto developers, DeFi platforms, and blockchain startups. This policy mitigates the apprehension surrounding prosecution for software development and aligns with global movements towards more organized crypto regulation.
Analysts suggest this clear stance may also affect international regulatory structures, as other nations pursue a balance between fostering innovation and ensuring oversight. The decision guarantees that reputable blockchain initiatives can function without excessive legal hazards, promoting advancement and creativity within the digital asset landscape.
