U.S. DoJ Clarifies Stance on DeFi Developers, Emphasizes Focus on Criminal Intent

The U.S. Department of Justice has provided clearer guidelines for the Web3 and digital assets sector, signaling a more nuanced approach to enforcement. Matthew Galeotti, acting assistant attorney general of the DoJ's Criminal Division, stated that developers of decentralized finance platforms won't face prosecution for user misconduct unless criminal intent is proven.

Speaking at the American Innovation Project Summit in Wyoming, Galeotti emphasized the DoJ's priority to distinguish between bad actors and legitimate innovators. The department acknowledged the organic demand for Web3 protocols and digital assets, underscoring the need to protect developers from liability when their software operates as truly decentralized, peer-to-peer systems without third-party control over user assets.

This policy clarification follows the controversial case against Tornado Cash co-founder Roman Storm, currently appealing his conviction for allegedly facilitating money laundering. The DoJ's new stance suggests a potential shift in how similar cases might be handled moving forward.