Crypto Advocacy Groups Challenge DOJ’s Stance on Open-Source Software
A coalition of major crypto advocacy groups, including Paradigm, the DeFi Education Fund, and the Blockchain Association, opposes the US Department of Justice (DOJ) applying money transmission laws to open-source software developers. The groups support Michael Lewellen, a developer facing legal action for creating a non-custodial DeFi protocol.
The Legal Battle Over Open-Source Development
The coalition argues the DOJ misinterprets Section 1960 of title 18 of the US Code, designed for unlicensed money transmitters, by applying it to decentralized software developers. This could hinder innovation and privacy tools in crypto.
Implications for the Crypto Community
An amicus brief warns that legal uncertainty may drive developers abroad or stop work on decentralized financial infrastructure. This tension between regulators and the crypto community centers on balancing innovation with compliance.
Key Facts
- The DOJ’s stance resembles prosecuting a frying pan maker for its use.
- Cases like US v. Storm and US v. Rodriguez show the DOJ targeting programmers under this law.
- The coalition seeks a declaratory judgment to clarify the law and protect US software development.
