Industry Leaders Protest “Overly Expansive” DOJ Interpretation of Cryptocurrency Laws
The DeFi Education Fund and leading crypto companies have called out the U.S. Department of Justice (DOJ) for its “unprecedented and overly expansive” interpretation of criminal code, which has been used to define crypto firms as unlawful money transmitters.
A Letter to Congressional Leaders
In a letter signed today and addressed to leaders of the House and Senate Committees on Banking and Judiciary, and the House Committee on Financial Services, the DeFi Education Fund said that the DOJ’s position “threatens the viability of U.S.-based software development in the digital asset industry and other industries.”
Industry Signatories
The letter was signed by 34 companies, foundations, and associations in the crypto industry, including the exchanges Coinbase, Kraken, and Crypto.com, as well as VC firms Andreessen Horowitz, Paradigm, and Dragonfly. The list continues with Uniswap Labs, Polygon Labs, and Consensys, among others.
A Call to Action
In a thread, the DeFi Education Fund called on Congress to correct the DOJ’s “dangerous misinterpretation of money transmission laws.” The organization emphasized that the DOJ’s position is a threat to the development of software in the digital asset industry and other industries.
Section 1960
The DeFi Education Fund has identified Section 1960 as one of the two pieces of U.S. legal code that defines a “money transmitting business.” The organization argues that the DOJ’s departure from a “clear, logically sound, and well-established definition of money transmission” creates a liability for software developers of non-custodial technology in the United States.
Conclusion
The DeFi Education Fund’s call to action is a crucial step in addressing the industry’s concerns about the DOJ’s interpretation of cryptocurrency laws. By bringing attention to the issue, the DeFi Education Fund is working to ensure that software developers are protected for the long-term.
FAQs
What is the DeFi Education Fund?
The DeFi Education Fund is a non-profit organization dedicated to promoting education and awareness about decentralized finance (DeFi) and its benefits.
What is Section 1960?
Section 1960 is one of two pieces of U.S. legal code that defines a “money transmitting business.” The DeFi Education Fund argues that the DOJ’s departure from a “clear, logically sound, and well-established definition of money transmission” creates a liability for software developers of non-custodial technology in the United States.
What is the significance of the DOJ’s interpretation of Section 1960?
The DOJ’s interpretation of Section 1960 has the potential to significantly impact the development of software in the digital asset industry and other industries. The DeFi Education Fund argues that the DOJ’s position is a threat to the viability of U.S.-based software development and is calling on Congress to correct the issue.
What is the DeFi Education Fund’s goal?
The DeFi Education Fund’s goal is to ensure that software developers are protected for the long-term. The organization is working to promote education and awareness about DeFi and to advocate for a regulatory framework that is fair and transparent.
