Michael Lewellen, a crypto developer and advocate, has filed a lawsuit against U.S. Attorney General Merrick Garland, aiming to safeguard his right to publish non-custodial cryptocurrency software without fear of prosecution. The lawsuit, filed on January 16 in a Texas federal court, is supported by Coin Center, a prominent crypto advocacy group . Debate Over Crypto Innovation Lewellen’s software, Pharos, focuses on crowdfunding campaigns without assuming custody or control of users’ funds. However, he alleges the Department of Justice (DOJ) has overreached by criminalizing similar software under money-transmission laws. The complaint claims these actions infringe upon the First and Fifth Amendments, which protect free speech and due process, respectively. “The DOJ’s broad interpretation of money transmission laws threatens the ability to build freely,” Lewellen posted on X (formerly Twitter). “This isn’t just about Pharos; it’s about the future of cryptocurrency innovation in America.” Lawsuit to Protect Crypto Developers Lewellen’s case highlights the growing unease among crypto developers about potential legal action from U.S. authorities. The lawsuit specifically references the prosecution of Roman Storm, co-founder of Tornado Cash , and Keonne Rodriguez, co-founder of Samourai Wallet, both accused of operating unlicensed money-transmitting businesses. According to Lewellen’s legal team, Pharos differs fundamentally from custodial platforms. The software does not allow its creator to control, direct, or access the funds that users transact. They argue that this lack of custodial control exempts Pharos from falling under money-transmitting laws. The developer is seeking a court declaration affirming that his software does not violate these laws, alongside an injunction to prevent the DOJ from prosecuting him. Lewellen is also requesting reimbursement for legal fees and additional relief deemed appropriate by the court. Regulatory Gray Areas Lewellen’s lawsuit is not an isolated incident. Recent years have seen several preemptive legal challenges aimed at clarifying regulatory ambiguities surrounding cryptocurrency. Cases against the Securities and Exchange Commission (SEC) by Consensys, Beba, and Lejilex underscore the industry’s demand for clearer guidelines. Attorney General Merrick Garland is set to exit his role as President-elect Donald Trump prepares to assume office. Trump’s pick for attorney general, Pam Bondi, is currently undergoing confirmation hearings. Industry insiders hope the incoming administration will foster a more favorable environment for blockchain innovation. The post Crypto Developer Sues Attorney General Over Non-Custodial Software Regulation appeared first on TheCoinrise.com .
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