DoJ’s New Stance on Crypto Developers

Today, Acting Assistant Attorney General (AAAG) of the Criminal Division of the Department of Justice (DoJ) Matthew Galeotti spoke at an event hosted by the American Innovation Project, emphasizing that the DoJ will no longer prosecute open-source crypto developers who do not intend to commit a crime.

> Official Remarks from the Department of Justice at AIP Summit Link
> — American Innovation Project (@AIPLeads) August 21, 2025

AAAG Galeotti began his address by outlining Deputy Attorney General (DAG) Todd Blanche’s direction regarding the DoJ’s commitment to “even-handed enforcement of the law” in the digital asset sector.

In his speech, Galeotti referred to a memo issued by DAG Blanche in April, which announced the end of the regulation-by-enforcement approach favored by the Biden administration in relation to the crypto industry and its developers.

Some key points from Galeotti’s remarks include:

• “The Department will not use federal criminal statutes to fashion a new regulatory regime over the digital asset industry. The department will not use indictments as a lawmaking tool. The Department cannot leave innovators guessing as to what could lead to criminal prosecution.”
• “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.”
• “Generally, developers of neutral tools, with no criminal intent, should not be held responsible for someone else’s misuse of those tools. If a third party’s misuse violates criminal law, that third party should be prosecuted — not the well-intentioned developer.”

Prominent voices from the crypto industry shared encouraging quotes from Galeotti’s speech:

> 1/ 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 (@katiebiber) August 21, 2025

However, some within the industry expressed skepticism, pointing out concerning quotes from AAAG Galeotti’s speech.

> Assistant Attorney General Galeotti gave an encouraging but incomplete speech at the AIP summit today. The highlight is a commitment to respect FinCEN guidance on non-custodial software development going forward. That’s good to hear. But Coin Center has some questions…
> — Peter Van Valkenburgh (@valkenburgh) August 21, 2025

After attending the talk, I felt a mixture of optimism and skepticism. While there were positive points, Galeotti’s remarks also left room for possible prosecutorial overreach.

Concerns regarding comments made later in the speech were particularly salient:

• “If a developer merely contributes code to an open-source project without the specific intent to assist criminal conduct, aid or abet a particular crime, or join a criminal conspiracy, he or she is not criminally liable.”
• “As the DAG memo makes clear, the Justice Department will not charge regulatory violations in cases involving digital assets… in the absence of evidence that a defendant knew of the specific legal requirements and willfully violated them. However, we may under certain circumstances bring cases under…prohibiting the transmission of funds that the defendant knows are derived from a criminal defense or are intended to be used to support unlawful activity.”
• “Where the evidence shows that software is truly decentralized and solely automates peer-to-peer transactions…new charges against a third party will not be approved. Though, if criminal intent is present, other charges may be appropriate.”

The DoJ’s vague definition of “criminal intent” raises concerns, especially given previous prosecutions of developers like Samourai and Tornado Cash. Developers have learned that engaging with bad actors can lead to scrutiny. Ultimately, Galeotti’s comments may overshadow the positive messages about protecting well-intentioned developers.

Pressing Congress for a safe harbor, as suggested in the Blockchain Regulatory Certainty Act (BRCA), remains crucial.

> The DOJ has yet to offer binding legal analysis; we will continue to press Congress for an authoritative safe harbor (BRCA) & support litigation. Grateful Michael Lewellen has pursued his case to obtain binding precedent; hope a judge rules publishing software is not a crime.
> — Peter Van Valkenburgh (@valkenburgh) August 21, 2025

In conclusion, even with this talk from AAAG Galeotti, developers must remain cautious as risks persist.

This post Curb Your Enthusiasm: Assistant Attorney General Galeotti’s Talk Changes Very Little first appeared on Bitcoin Magazine and is written by Frank Corva.