Crypto Lobby Urges Trump to End Prosecution of Open-Source Developers
today / 05:56
The DeFi Education Fund has petitioned the Trump administration to halt the ongoing prosecution of open-source software developers, including Roman Storm, the creator of Tornado Cash. In a letter addressed to White House crypto czar David Sacks, the group argued that the current DOJ actions—deemed a 'lawless campaign'—impose criminal liability on developers for how others use their code, potentially chilling innovation across the crypto industry in the United States. The petition further contends that the prosecution contradicts earlier FinCEN guidance from Trump’s first term, which stated that developers of self-custodial, peer-to-peer protocols are not money transmitters. Highlighting the stakes involved, the letter references Storm’s pending trial set for July (though no specific date was provided) and notes that his co-founder, Roman Semenov, remains at large in Russia. The petition, which has already attracted 232 signatures from industry figures including Coinbase co-founder Fred Ehrsam and Ethereum core developer Tim Beiko, praises Trump’s past support for the crypto industry while warning that continued legal overreach could freeze innovation. This development follows a recent Texas federal court ruling that questioned the Treasury’s authority in sanctioning Tornado Cash.
The news may have a mixed impact on ETH. Positive implications arise from a potential restoration of legal clarity, which could bolster investor confidence in the Ethereum ecosystem and support open-source development. However, the ongoing legal uncertainties and political disputes might induce short-term volatility, balancing the overall effect.
TORN could experience increased volatility stemming from the legal controversies linked to its creator, Roman Storm. A favorable ruling, which might affirm the protection of open-source developers, could reduce regulatory risk and boost the token’s price over the long term, while unresolved legal challenges may exert downward pressure in the short term.
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