Catenaa, Sunday, April 06, 2025-The DeFi Education Fund and 34 major crypto firms, including Coinbase, Kraken, and Crypto.com, are urging US lawmakers to clarify the Department of Justice’s (DOJ) interpretation of the criminal code that defines crypto companies as unlawful money transmitters.
In a letter sent to leaders of key Congressional committees, the DeFi Education Fund called the DOJ’s position, which emerged in 2023, “unprecedented and overly expansive,” warning that it threatens the viability of US-based software development in the crypto industry.
The letter highlights ongoing cases, including the prosecution of Tornado Cash co-founder Roman Storm, who faces money laundering charges for creating software used in crypto transactions. Crypto advocates argue that such technology is protected under freedom of speech, but courts have allowed the case to proceed, highlighting tensions between innovation and legal boundaries.
The DeFi Education Fund’s executive director, Amanda Tuminelli, stressed that clarifying Section 1960 of US law is critical to preventing “regulation by criminal indictment.” The fund argues that the DOJ’s interpretation has deviated from the original definitions set by other regulatory frameworks, creating uncertainty for developers of non-custodial technologies.
As the crypto industry seeks more regulatory clarity, especially around decentralized finance (DeFi), the letter represents a significant push for a more predictable legal environment.
The DeFi Education Fund and industry leaders are advocating for protections that would allow innovation to thrive while ensuring compliance with existing laws.
