DOJ Paves Way for Decentralized Crypto With Major Win for Open Source Devs

DOJ Fuels Crypto Boom With Major Win for Builders and True Decentralization

The U.S. Department of Justice (DOJ) is drawing sharper lines around cryptocurrency enforcement, signaling stronger protections for innovators while keeping a firm stance against criminal abuse. Speaking at the American Innovation Project Summit in Jackson, Wyoming, on Aug. 21, 2025, Acting Assistant Attorney General Matthew R. Galeotti stressed that prosecutors are not regulators or legislators, but enforcers of criminal law bound by due process and constitutional limits.

He emphasized that building tools, writing code, or experimenting with decentralized technologies should not place responsible developers at risk of prosecution, making clear that the Department’s focus is on intent-driven misconduct such as fraud, money laundering, and sanctions evasion. Galeotti directly addressed concerns from the industry:

If a developer merely contributes code to an open-source project, without the specific intent to assist criminal conduct, aid or abet a crime, or join a criminal conspiracy, he or she is not criminally liable.

He also clarified how the DOJ evaluates money transmission charges: “Many developers have relied on regulatory guidance to suggest that non-custodial cryptocurrency software does not constitute an unlicensed money transmitting business. While that guidance may not be binding on the Department, its implications can of course factor into prosecutors’ charging decisions.”

He continued:

Therefore, where the evidence shows that software is truly decentralized and solely automates peer-to-peer transactions, and where a third party does not have custody and control over user assets, new 1960(b)(1)(C) charges against the third-party will not be approved.

These assurances reinforce that decentralized software development, absent bad intent, will not be criminalized.

While citing enforcement against a China-based laundering syndicate, a $225 million fraud-related forfeiture, and a Ponzi scheme promising AI-driven crypto profits, Galeotti framed these cases as necessary steps to protect trust in the ecosystem. He underscored that strong enforcement against bad actors ultimately strengthens the industry, ensuring innovators can continue to build without fear of arbitrary liability. The DOJ’s approach signals that digital assets are increasingly recognized as a central component of U.S. innovation and economic growth, with law enforcement targeting only those who undermine that progress.