Coin Center argues “crypto code is speech” for First Amendment protections

Coin Center says “crypto code is speech” and should not be treated as regulatable “conduct” in U.S. courts. In a report released Monday, Peter Van Valkenburgh and Lizandro Pieper argue that crypto developers’ publication of functional code deserves First Amendment protection, while regulators can focus on agent-like actions—such as directly controlling user funds, executing transactions for users, or making decisions on users’ behalf. The filing rejects a “functional code theory” that would treat real-world effects of code as criminal behavior. Coin Center grounds its position in Supreme Court precedent, emphasizing that adding licensing, “pre-registration,” or similar permissioning requirements for publishing code would amount to unconstitutional prior restraint. It also cites Lowe v. SEC to support the idea that publishing information without managing client assets should be protected. Coin Center’s argument arrives as legal pressure on developers increases. It points to the conviction of Tornado Cash developer Roman Storm in connection with an alleged unlicensed money-transmitting business, and to prison sentences for Samourai Wallet developers (about four to five years). The industry concern is that open-source crypto tools could face criminal or compliance scrutiny based on how others use them. For traders, the market relevance is regulatory risk allocation: if courts accept Coin Center’s “crypto code is speech” framing, tail risk for infrastructure builders may ease; if not, compliance fears could persist across the crypto tech sector.