The Digital Chamber is proud to join a coalition of leading industry organizations—Solana Policy Institute, DeFi Education Fund, Paradigm, Bitcoin Policy Institute, Blockchain Association, Crypto Council for Innovation, and Uniswap Foundation—in filing an amicus brief in the case of Lewellen v. Bondi. This case carries profound implications for the future of blockchain innovation in the United States.
At the heart of the case lies a critical question: Should non-custodial software developers be treated as “money transmitters” under federal law simply for creating tools that allow others to transact on a peer-to-peer basis? The Department of Justice (DOJ) has taken the position that they should. We strongly disagree.
Non-custodial developers build software; nothing more, nothing less. They do not take custody of, control, or transmit customer funds. Applying federal money transmission laws to these developers is a dangerous overreach that misinterprets both the letter and the spirit of the law.
The DOJ’s position is equivalent to holding car manufacturers responsible for speeding tickets or telecom providers liable for fraud committed over phone calls. This logic not only defies common sense but also threatens to criminalize software development, stifle open-source innovation, and drive blockchain leadership out of the United States.
The amicus brief we joined seeks to make clear that Section 1960 of the federal code, which governs unlicensed money transmission, was never intended to apply to software developers who build non-custodial tools. The case’s outcome could set a precedent impacting not just the digital asset ecosystem, but the broader tech and open-source communities as well.
At The Digital Chamber, we believe that innovation must be protected, and that builders should not face criminal prosecution for creating tools that empower users to control their own assets. A vibrant digital economy depends on clear, fair, and reasonable regulations that distinguish between those who provide infrastructure and those who provide financial services.
We are committed to ensuring that the United States remains a welcoming environment for blockchain development and responsible innovation. This case is a key step in that fight.