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Washington, D.C. — The U.S. Department of Justice (DOJ) has announced that it does not intend to pursue criminal charges against software developers who create decentralized platforms for transmitting cryptocurrencies, provided there is no evidence of criminal intent. The statement, delivered Thursday by Acting Assistant Attorney General Matthew Galeotti, marks a significant shift in the federal government’s approach to digital asset enforcement.
“Our view is that merely writing code, without ill intent, is not a crime,” Galeotti said during remarks at a cryptocurrency summit in Wyoming. The DOJ’s updated position reflects a broader recalibration of its priorities, focusing on prosecuting fraud, money laundering, and other criminal misuse of digital assets, rather than targeting developers for technical noncompliance.
Ending “Regulation by Prosecution”
The announcement follows the release of a policy memorandum in April 2025 by Deputy Attorney General Todd Blanche, which formally ended the DOJ’s previous practice of “regulation by prosecution.” Under the new framework, the department will no longer pursue enforcement actions that effectively impose regulatory obligations on digital asset platforms—such as registration as money transmitters—unless there is clear evidence of willful misconduct.
This shift comes in the wake of high-profile cases, including the prosecution of Tornado Cash co-founder Roman Storm, who was convicted of operating an unlicensed money transmitting business. Critics of the case argued that Storm merely authored the code and did not control how users interacted with the platform. The jury deadlocked on separate charges of money laundering and sanctions evasion.
Implications for the Crypto Sector
The DOJ’s revised stance is expected to reduce legal uncertainty for developers working on decentralized finance (DeFi) protocols and other blockchain-based technologies. By narrowing its enforcement focus, the department aims to foster innovation while maintaining safeguards against criminal exploitation.
The move also aligns with broader efforts under the current administration to support a more predictable and innovation-friendly regulatory environment. President Trump has emphasized ending the “regulatory weaponization” of digital assets, and the DOJ has since disbanded its crypto enforcement team, while other agencies such as the Securities and Exchange Commission have scaled back litigation against crypto firms.
Focus on Criminal Misuse
While the DOJ is stepping back from prosecuting developers for technical violations, it remains committed to investigating and prosecuting cases involving fraud, terrorism financing, organized crime, and other serious offenses involving digital assets. Recent actions include a $225 million seizure in a global investment fraud case and indictments against foreign nationals for exploiting smart contract vulnerabilities.
The DOJ’s updated policy is not intended to create new legal protections but rather to clarify enforcement priorities. As Galeotti noted, “We are focused on bad actors who use digital assets to harm others—not on those who build the tools.”
For more details, check Reuters and explore the DOJ’s policy memorandum on Justice.gov.
