U.S. Senator Cynthia Lummis recently spoke out against the Department of Justice’s stance on crypto self-custody, arguing that it conflicts with existing Treasury guidance and undermines the rule of law. Lummis, a Republican from Wyoming, expressed her opposition to the Biden Administration’s efforts to criminalize aspects of the Bitcoin network and decentralized finance (defi).
The Department of Justice’s position has led to legal actions against various cryptocurrency entities, including the indictment of individuals behind popular tools like Bitcoin mixer Samourai Wallet and Tornado Cash. These actions have been taken on the grounds of unlicensed money transmission, prompting backlash from the cryptocurrency community and advocacy groups like Coin Center.
Peter Van Valkenburgh, the director of research at Coin Center, highlighted the contradiction between the DOJ’s interpretation and FinCEN’s established guidelines. According to Van Valkenburgh, the DOJ’s stance essentially categorizes every cryptocurrency wallet and smart contract as engaging in money transmission without a license. Coin Center has taken a strong stance against this interpretation and has filed an amicus brief in support of Roman Storm, the developer of Tornado Cash, arguing that the publication of the code is protected under the First Amendment.
The cryptocurrency community continues to push back against the Department of Justice’s approach, citing concerns about the implications for innovation and freedom of speech in the space. As the debate unfolds, it remains to be seen how regulatory authorities will navigate the evolving landscape of cryptocurrency and blockchain technology.