The U.S. Department of Justice (DOJ) announced a significant policy shift stating it will no longer pursue charges against decentralized software developers for a specific crime, U.S. code 1960(b)(1)(C). This change follows the recent conviction of Tornado Cash co-founder Roman Storm, who was found guilty of operating an unlicensed money transmitting business. The DOJ clarified that if a software is genuinely decentralized and does not involve third-party custody of assets, such charges will not be approved. While this policy shift was welcomed by many in the crypto community, concerns linger over its late implementation in Storm’s case and the ongoing discretion the DOJ retains in prosecuting other charges. Matthew Galeotti, a high-ranking DOJ official, indicated that charges could still arise if criminal intent is proven, leading to mixed reactions among industry leaders. Additionally, concerns about the DOJ's broader approach to crypto regulation remain, with analysts questioning whether this new policy will truly impact future prosecutions.

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