The United States Department of Justice has stepped up its legal clarity for the Web3 and digital assets space. On Thursday, Matthew Galeotti, acting assistant attorney general of the Department of Justice’s Criminal Division, said that Web3 developers will not be prosecuted for any wrongs made by users of their DeFi platforms.
Galeotti, who was speaking at the American Innovation Project Summit in Jackson Wyoming, highlighted that the DoJ will focus on rooting out bad actors while enabling the good players. Moreover, the DoJ admitted that there is an organic demand for web3 protocols and digital assets, thus the need to protect the developers from user misuse.
“Where the evidence shows that software is truly decentralised and solely automates peer-to-peer transactions, and where a third-party does not have custody and control over user assets, new charges against a third party will not be approved,” Galeotti noted.
The DoJ’s comments follow the recent conviction of Tornado Cash co-founder Roma Storm on charges of conspiracy to operate an unlicensed money transmitting business. Roman, who is preparing to proceed to the Court of Appeals, is being prosecuted for enabling bad actors to launder money intentionally.
However, pro-crypto leaders have argued that privacy is normal and writing code is not a crime. The DoJ’s clarification will play a crucial role in the mainstream development of web3 protocols, especially fully decentralized platforms.
Most importantly, the DoJ’s clarification marks the end of the Justice Department being used to regulate the crypto industry.
“For too long, crypto and open source developers in the US have been living under a cloud of doubt. That uncertainty ends today, with an emphatic statement from the DOJ that shipping code is not a crime,” Katie Biber, CLO Paradigm, noted.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
WazirX, once India’s largest cryptocurrency exchange by volume, is preparing to reopen on October 24,…
Berachain has proposed a new Preconfirmation System aimed at enhancing transaction confirmation speeds by over…
WazirX is set to resume trading on October 24, marking the final step in its…
T. Rowe Price, the 87-year-old investment giant managing about $1.8 trillion in assets, has filed…
As someone closely watching the crypto space, it’s hard not to get excited about Hyperliquid’s…
Tom Lee, co-founder of Fundstrat and president of Bitmine, remains bullish on Ethereum despite the…