The US Department of Justice (DOJ) has announced a major shift in its approach to cryptocurrency regulation, moving away from past skepticism and toward more collaboration with the industry. This change comes following the recent conviction of individuals associated with Tornado Cash, a prominent open-source software project known for its contributions to privacy and decentralized transactions. The DOJ is now planning to reassess its strategies regarding criminal accusations against crypto developers, particularly focusing on the distinction between developers’ intentions and those of third-party actors who may misuse their work. Matthew Galeotti, Assistant Chief Counsel of the DOJ’s Criminal Division, emphasized this new perspective during a summit in Wyoming. He stated that if evidence shows software is genuinely decentralized, with no third party having control over user assets, it will not be used to justify charges against developers. “If evidence shows that the software is truly decentralized and merely automates peer-to-peer transactions without any third party having custody or control over user assets, new charges against a third party will not be approved,” Galeotti asserted during his speech.
The DOJ’s change in stance offers a significant shift for crypto developers and advocates. It recognizes the importance of privacy and decentralization as core principles within the cryptocurrency space. The move is seen as a welcome development by many in the industry who have been advocating for more supportive regulations that foster innovation.