30 crypto firms call on Congress for clarity on money transmitter rules

More than 30 Crypto companies, led by the DEFI education fund, urge Congress to tackle the interpretation of the Ministry of Justice of monetary issuers, who, according to them, could exhibit developers of non -guardian software for criminal responsibility.

In a letter Sent to the main legislators, in particular the president of the Senate Banking Committee Tim Scott and the president of the Jim Jordan Chamber Jimal Chamber, the industry argues that the DOJ position on the 1960 section – first presented in an indictment of August 2023 – departs from the existing councils of the Treasury Department.

Signatories, including JammingParadigm, and Krakenaffirms that the interpretation does not take into account the Financial Crimes Smart Network The 2019 guidelines, which indicate that developers who do not take care of user funds are not money issuers.

“The new Doj policy position … creates confusion and ambiguity with the spectrum of criminal responsibility,” said the letter. “Essentially, each blockchain developer could be prosecuted as a criminal.”

Crypto -free “license” silver issuing companies

The 1960 article of the American code criminalizes the operation of a “company of transmission of money without license”. However, cryptographic companies argue that this should only apply to childcare services that really hold and transfer user funds, not suppliers of non -guardian software.

The courts have historically referred to Fincen regulations to determine compliance, but recent MJ’s legal actions like those against Tornado Cash Developers – suggest a wider interpretation that could lead to more prosecution.

The letter warns that less than the congress intervenes, American cryptographic innovation could be stifled, pushing developers abroad.

“The federal government should not play a game of bait and switching,” said the letter. “The congress should urge the MJ to correct its poor application of the law and clarify article 1960 to transmit the intention of the congress.”