Sacramento District Attorney has called for U.S. prosecutors to focus on genuine criminals rather than targeting cryptocurrency developers. Highlighting the misuse of 18 U.S.C. Section 1960, originally intended for money-transmitting businesses, the DA criticized its application against developers of noncustodial, peer-to-peer blockchain technology. The DA emphasized that these developers do not handle customer funds or operate traditional businesses, and prosecuting them under this statute is a misapplication of the law.
The DA praised the Department of Justice's 2025 memorandum, which clarified that Section 1960 should not be used against decentralized software developers. However, the DA stressed the need for legislative clarity to protect innovation and prevent the exodus of developers overseas. The DA supports the Promoting Innovation in Blockchain Development Act, which aims to restore the original intent of Section 1960 and ensure that enforcement targets genuine financial criminals, not software developers.
Sacramento DA Urges Focus on Criminals, Not Crypto Developers
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