What happened?
The US Justice Department announced it will not prosecute software developers who create decentralized platforms for transmitting cryptocurrencies unless there is clear criminal intent. According to Acting Assistant Attorney General Matthew Galeotti, writing code alone without malicious intent is not considered a crime. This policy change moves away from charging developers with failing to register as money transmitters.
Who does this affect?
This decision impacts software developers and creators involved in cryptocurrency and decentralized finance (DeFi) platforms. Developers who were previously concerned about legal liability for their open-source projects can now focus on innovation with less fear of prosecution. The ruling also affects decentralized exchanges that lack control over user transactions and cannot meet traditional money transmitter regulations.
Why does this matter?
The policy shift could significantly impact the cryptocurrency market by providing more legal clarity for developers, encouraging innovation, and potentially boosting confidence among investors and users. It also highlights the growing recognition of the unique challenges and operational differences of decentralized platforms compared to traditional financial services. However, anti-money laundering advocates worry about the potential for these platforms to facilitate illicit activities if they remain underregulated.