DOJ: Code Writing Isn’t a Crime, Clarifies Crypto Regulation

The U.S. Department of Justice (DOJ) announced that writing code without intent to facilitate fraud or illegal activity will not be prosecuted. Acting Assistant Attorney General Matthew J. Galeotti emphasized at an American Innovation Project event in Wyoming that only deliberate wrongdoing—such as money laundering or sanctions evasion—will trigger charges. This policy shift reverses aggressive actions against projects like Tornado Cash, giving developers legal clarity. Under the clarified crypto regulation environment, code authors lacking malicious intent are protected under 18 U.S.C. § 1960. This policy addresses uncertainties following the Tornado Cash co-founder’s conviction and counters SDNY prosecutions of privacy-tool teams. It aims to foster innovation and stability in DeFi platforms and blockchain development. Industry groups including the DeFi Education Fund praised the announcement and urged lasting legislative reforms. By distinguishing innocuous coding from criminal conduct, the DOJ signals a developer-friendly crypto regulation framework that could bolster market confidence.