Crypto Case Over Money Transmitter Laws Dismissed by US Judge
A U.S. federal court dismissed a lawsuit by Michael Lewellen, a crypto software developer who sought a ruling that his non-custodial donation platform would not violate federal money transmission laws. The court found Lewellen lacked standing, stating he could not demonstrate a credible threat of prosecution, as recent DOJ guidance suggests authorities are unlikely to pursue enforcement actions against such software developers without clear violations. The ruling left unresolved whether developers of non-custodial crypto software must register as money transmitters under U.S. law. Lewellen’s challenge could be revisited if regulators target similar platforms in the future. The case had support from major crypto industry groups, who worry that financial laws aimed at custodial intermediaries could be inappropriately applied to open-source developers. The decision occurs as the government pursues a high-profile prosecution against Tornado Cash developer Roman Storm, highlighting ongoing regulatory uncertainty for crypto software creators.
