DOJ Shifts Stance on Decentralized Software Developers’ Liability

The post DOJ Shifts Stance on Decentralized Software Developers’ Liability appeared on BitcoinEthereumNews.com. Key Points: The DOJ will not prosecute decentralized software developers without criminal intent. Boost in innovation expected for DeFi and privacy protocols. Major reassessment of developer liability fosters market confidence. The U.S. Department of Justice announced a major shift, ceasing prosecution against decentralized software developers under Section 1960(b)(1)(C) to encourage innovation and protect creators. This significant policy change addresses concerns like those raised by the Roman Storm case, potentially boosting developer and investor confidence in decentralized finance markets. DOJ Exemption Spurs Innovation and Market Confidence The U.S. Department of Justice has implemented a new policy exempting decentralized software developers from prosecution under certain conditions. This change, announced by Acting Assistant Attorney General Matthew Galeotti, underscores the DOJ’s commitment to fostering innovation by not criminalizing code creation in the absence of malicious intent. The announcement clarified that as long as the systems are fully decentralized, automated, peer-to-peer, and without third-party control over assets, developers have clarity about their operations. The DOJ emphasizes that contributions to open-source projects without criminal intent will not constitute a crime, aiming to encourage more development in the digital asset space. “Our view is that merely writing code without ill intent is not a crime. Innovating new ways for the economy to store and transmit value and create wealth without ill intent is not a crime.” – Matthew Galeotti, Acting Assistant Attorney General, U.S. Department of Justice Following this announcement, developers and investors have expressed support, recognizing it as a step towards better understanding and cooperation with regulators. Statements from industry leaders and online communities praise this approach, highlighting the importance of a balanced legal framework that supports technological advancement while maintaining lawful practices. Ethereum and DeFi Markets Positioned for Growth Did you know? The DOJ’s decision aligns with the historical community push following the Tornado Cash…

Aug 22, 2025 - 11:00
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DOJ Shifts Stance on Decentralized Software Developers’ Liability

The post DOJ Shifts Stance on Decentralized Software Developers’ Liability appeared on BitcoinEthereumNews.com.

Key Points: The DOJ will not prosecute decentralized software developers without criminal intent. Boost in innovation expected for DeFi and privacy protocols. Major reassessment of developer liability fosters market confidence. The U.S. Department of Justice announced a major shift, ceasing prosecution against decentralized software developers under Section 1960(b)(1)(C) to encourage innovation and protect creators. This significant policy change addresses concerns like those raised by the Roman Storm case, potentially boosting developer and investor confidence in decentralized finance markets. DOJ Exemption Spurs Innovation and Market Confidence The U.S. Department of Justice has implemented a new policy exempting decentralized software developers from prosecution under certain conditions. This change, announced by Acting Assistant Attorney General Matthew Galeotti, underscores the DOJ’s commitment to fostering innovation by not criminalizing code creation in the absence of malicious intent. The announcement clarified that as long as the systems are fully decentralized, automated, peer-to-peer, and without third-party control over assets, developers have clarity about their operations. The DOJ emphasizes that contributions to open-source projects without criminal intent will not constitute a crime, aiming to encourage more development in the digital asset space. “Our view is that merely writing code without ill intent is not a crime. Innovating new ways for the economy to store and transmit value and create wealth without ill intent is not a crime.” – Matthew Galeotti, Acting Assistant Attorney General, U.S. Department of Justice Following this announcement, developers and investors have expressed support, recognizing it as a step towards better understanding and cooperation with regulators. Statements from industry leaders and online communities praise this approach, highlighting the importance of a balanced legal framework that supports technological advancement while maintaining lawful practices. Ethereum and DeFi Markets Positioned for Growth Did you know? The DOJ’s decision aligns with the historical community push following the Tornado Cash…

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