Michael Lewellen, a blockchain developer, has initiated a legal action against the United States Department of Justice (DOJ), alleging that the Biden administration is hindering the advancement of cryptocurrency technology by applying a wide interpretation to money transfer regulations.
As a passionate crypto investor, I can’t help but voice my concerns over the recent administrative actions that seem to be deterring blockchain developers from creating innovative tools within our borders. The result? Talented individuals are being driven away from the U.S., which is not only a loss for our tech community but also hinders the growth and development of this promising sector.
Stifling Crypto Innovation
The legal case centers around Lewellen’s involvement with Pharos. This system, which doesn’t require custody, enables people to collectively donate cryptocurrencies in a transparent and trustworthy manner for charitable or project-based campaigns. Importantly, it eliminates the need for third-party mediators.
In a January 16 post on X, the Texas resident explained the motivation behind his legal challenge:
As an analyst, I’d rephrase this statement as follows: “I’m advocating for a legal landscape that empowers innovators to confidently pioneer new ideas, preventing the manipulation of laws to stifle advancement and growth.
He additionally spoke out against what he perceives as regulatory uncertainty being used to discourage cryptocurrency developers, insisting that such tactics should be stopped.
According to Lewellen, who is backed by Coin Center, his case questions the Department of Justice’s authority in three key areas. He argues that the officials don’t have the legal right to charge him for running an unregistered “monetary transaction” operation.
According to the blockchain specialist, Pharos merely empowers users to handle cryptocurrency transactions but doesn’t actually hold or administer funds itself. As a result, Pharos is considered not liable as a money transmitter under Financial Crimes Enforcement Network (FinCEN) regulations.
The argument made here is that it’s unconstitutional under the First Amendment to prosecute software architects for creating and sharing code, as this act constitutes a restriction on their freedom of expression. As stated in the court document, the DOJ’s actions are seen as a violation of free speech by penalizing individuals solely for publishing their code.
Ultimately, the argument asserts that uneven enforcement of laws infringes upon due process rights. Specifically, it refers to instances where creators of non-custodial cryptocurrency software, who have been deemed exempt from money transmitter status by federal guidelines, are still facing prosecution under those regulations.
The lawsuit aims to secure a court ruling stating that the activities of the cryptocurrency entrepreneur’s business are compliant with money transmission regulations, obtain a restraining order preventing the Department of Justice from pursuing criminal charges against him, and recover costs related to legal expenses.
Crypto Developers Under Heightened Scrutiny
This new development arises amidst growing examination and legal actions primarily focusing on crypto software developers within the digital currency sector.
As a crypto investor, I’ve come across instances similar to the ones involving Roman Storm, the founder of Tornado Cash, and Keonne Rodriguez, co-founder of Samourai Wallet. They’ve been accused of managing cryptocurrency tumblers, which authorities claim were used for activities like unauthorized money transfers and money laundering.
In April 2024, Rodriguez and his fellow Samourai Wallet founder, William Lonergan Hill, were taken into custody for allegations of money laundering. These accusations stemmed from claims that their wallet service facilitated transactions worth approximately $2 billion that were deemed illegal.
In a similar vein, Storm’s court trial for alleged crimes linked to Tornado Cash is scheduled for April 14 in New York, as the judge refused to drop the case against him. However, Storm’s associate, Roman Semenov, continues to evade capture.
Read More
- INJ PREDICTION. INJ cryptocurrency
- SPELL PREDICTION. SPELL cryptocurrency
- How To Travel Between Maps In Kingdom Come: Deliverance 2
- LDO PREDICTION. LDO cryptocurrency
- The Hilarious Truth Behind FIFA’s ‘Fake’ Pack Luck: Zwe’s Epic Journey
- How to Craft Reforged Radzig Kobyla’s Sword in Kingdom Come: Deliverance 2
- How to find the Medicine Book and cure Thomas in Kingdom Come: Deliverance 2
- Destiny 2: Countdown to Episode Heresy’s End & Community Reactions
- Deep Rock Galactic: Painful Missions That Will Test Your Skills
- When will Sonic the Hedgehog 3 be on Paramount Plus?
2025-01-17 21:32