The U.S. Department of Justice clarified: Open Source smart contracts developers are not liable for unintentional actions.

Matthew Galeotti, the head of the Criminal Division of the U.S. Department of Justice (DOJ), made it clear at the U.S. Innovation Project Summit on August 21 that merely writing code without criminal intent does not constitute a crime. This statement delineates clearer criminal liability boundaries for Crypto Assets and smart contracts developers and is regarded as one of the most explicit legal guidance for digital asset developers to date.

DOJ: No malicious code does not constitute a crime

Galeotti pointed out in his speech that developers who only contribute code to open-source projects and do not have the intent to assist, incite, or participate in specific crimes will not bear criminal liability.

He emphasized that the charges of aiding and abetting, as well as conspiracy, require the prosecution to prove a specific criminal intent, which establishes a higher burden of proof for cases against developers.

This statement directly addresses industry concerns that "smart contract developers may be held accountable due to third-party misuse of the code."

Legal Protection for Unlicensed Remittances and Decentralized Software

Regarding the unlicensed money transfer allegations under 18 USC 1960, Galeotti stated that the Department of Justice would not initiate criminal charges unless there is evidence showing that the defendant knowingly violated the legal requirements.

He specifically pointed out that truly decentralized and automatically executed peer-to-peer transactions through non-custodial software will not trigger new accusations of 1960(b)(1)(C) due to the third party not having custodial rights over the assets.

This means that non-custodial crypto software will not be considered unauthorized funds transfer business as long as it complies with legal and technical requirements.

The Line Between Legal Innovation and Criminal Activity

The new guidelines from the Department of Justice clearly distinguish between "the legitimate development of neutral tools" and "malicious abuse."

Legal developers: If there is no criminal intent, they should not bear criminal responsibility due to third-party abuse.

Abusers: The prosecution should focus on the individuals who commit crimes using tools, rather than well-intentioned creators.

Galeotti stated that this "technologically neutral" law enforcement approach treats digital asset crimes and traditional financial violations equally, while avoiding excessive regulation that stifles innovation.

The Significance for Crypto Developers and the Industry

This policy signal has far-reaching implications for the crypto assets industry, especially for the open-source community:

Reduce legal uncertainty: Developers can contribute code without malice, without worrying about being misidentified as assisting in criminal activity.

Encouraging decentralized innovation: Truly decentralized non-custodial applications will receive legal protection.

Clarify regulatory boundaries: Prosecutors must prove specific criminal intent to prosecute developers, preventing the abuse of laws to stifle technological innovation.

Conclusion

The latest statement from the U.S. Department of Justice provides clearer legal safety boundaries for smart contracts and open-source software developers, and releases regulatory signals of "protecting legitimate innovation and combating malicious abuse." With the rapid development of decentralized finance and blockchain applications, this policy is expected to alleviate developers' legal concerns and promote the healthy growth of the Crypto Assets industry. For more updates on crypto regulations and policies, please follow the official Gate platform.