WASHINGTON, Monday, May 20, 2024 – In a rare display of bipartisanship, a group of US senators have sent a letter to the Department of Justice (DOJ) urging the department to halt its efforts to restrict access to privacy-focused cryptocurrency software.1
The letter, signed by both Democratic and Republican senators, argues that the DOJ’s actions stifle innovation and unfairly target law-abiding citizens. It emphasizes the importance of privacy for financial transactions while acknowledging the need for tools to combat criminal activity.
The letter sent to Attorney General Merrick Garland on May 9, 2024, urges the Department of Justice (DOJ) to reverse its stance on regulating non-custodial cryptocurrency software.
The letter argues that the DOJ’s interpretation of money transmitter laws unfairly targets software developers and contradicts existing guidance from the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).
In the letter, several key points are highlighted.
The Department of Justice (DOJ) asserts that non-custodial crypto software providers must obtain money transmitter licenses, a stance that could lead to criminalization. However, Senators argue that this interpretation extends beyond the original intent of the law, which primarily targets services assuming control of user assets.
Furthermore, FinCEN, tasked with interpreting money transmission laws, has consistently maintained that non-custodial services do not fall under the category of money transmitters.
The Senators also warn that the DOJ’s approach stifles innovation in the cryptocurrency industry.
They urge the DOJ to abandon its interpretation and work collaboratively with the crypto industry to address security concerns without compromising user privacy.
- Crypto Software: https://x.com/SenLummis/status/1790050111575277833[↩]
