Close Menu
  • Latest News
    • Bitcoin
    • Ethereum
    • Altcoins
    • Meme Coins
  • Tech
    • Blockchain
    • Security and Privacy
  • Web 3
    • Gaming
  • Legal
    • Legal and Regulatory
    • Adoption
  • Analysis
  • Learn
    • Education
    • Wallets and Exchanges
  • Tools
    • Market Overview
    • Exchange Tool
What's Hot

OpenStocks’ BNB Chain Tokens Offer Price Exposure, Not Private Shares

October 24, 2026

New OCC stablecoin rule resets redemptions, and banks face big shifts

October 24, 2026

When Will BTC Hit $100K Again?

October 24, 2026
Facebook X (Twitter) Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • Disclosure
Facebook X (Twitter) Instagram
Free.cc (Free Cryptocurrency)Free.cc (Free Cryptocurrency)
  • Latest News
    1. Bitcoin
    2. Ethereum
    3. Altcoins
    4. Meme Coins
    5. View All

    When Will BTC Hit $100K Again?

    October 24, 2026

    Chinese Prosecutors Seek Confiscation of 61,896 BTC Seized in UK From Massive Fraud: Report

    October 24, 2026

    Robinhood (HOOD) sees surge in Bitcoin (BTC), Gold prediction markets as traders move beyond sports

    October 23, 2026

    AI Risk Could Force Bitcoin Drawdown To $10,000

    October 23, 2026

    Ethereum’s Glamsterdam testnet hits setback – Why Solana remains ahead

    October 23, 2026

    ETH Slips Below $2,400 as ETF Outflows and Market Sell-Off Pressure Bulls

    October 22, 2026

    Ethereum: Can $61M in whale withdrawals help ETH bulls regain control?

    October 22, 2026

    Ethereum staking hits record highs – So why are yields falling?

    October 22, 2026

    IRYS crypto jumps nearly 580% as traders betting against it lose $21M

    October 24, 2026

    Ethereum Delays Glamsterdam Test On Hoodi Over Smart Contract Compatibility Questions

    October 23, 2026

    Cosmos crypto defies market weakness – Can ATOM rally toward $2?

    October 23, 2026

    Chainlink’s $1.02M whale buy: An early Q4 signal or an isolated bet?

    October 23, 2026

    Top 5 Memecoins to Watch in 2026: Hype, Utility, or Growth?

    October 14, 2026

    Did Jean Phil Go Viral First — or Was the Viral Persona Built to Launch a Memecoin?

    October 5, 2026

    Thinking Cat Gains Momentum After CASHCAT’s Breakout

    August 12, 2026

    What Tokens Could He Target?

    July 30, 2026

    OpenStocks’ BNB Chain Tokens Offer Price Exposure, Not Private Shares

    October 24, 2026

    New OCC stablecoin rule resets redemptions, and banks face big shifts

    October 24, 2026

    When Will BTC Hit $100K Again?

    October 24, 2026

    ABA Bankers Criticize US OCC’s GENIUS Act Rule Update

    October 24, 2026
  • Tech
    1. Blockchain
    2. Security and Privacy
    3. View All

    OpenStocks’ BNB Chain Tokens Offer Price Exposure, Not Private Shares

    October 24, 2026

    SBI and Shinhan Card Partner on Blockchain Payments

    October 24, 2026

    Malaysia central bank launches DLT platform for tokenized bonds

    October 23, 2026

    Pyth Pro Powers New Loan Pools with WIF, PUMP, and SOL

    October 23, 2026

    Bitcoin Core Changes Security Policy as AI Makes Vulnerabilities Easier to Find

    October 23, 2026

    Coinbase, Bitgo Say Unaffected by PHP Flaw; Binance’s CZ Urges Caution

    October 22, 2026

    Crypto Thieves Hijack Ngrave Alerts and Walk Away With $2.56M

    October 21, 2026

    Zcash Proposes New Privacy Layer to Guard Swaps From Quantum Risks

    October 20, 2026

    OpenStocks’ BNB Chain Tokens Offer Price Exposure, Not Private Shares

    October 24, 2026

    New OCC stablecoin rule resets redemptions, and banks face big shifts

    October 24, 2026

    When Will BTC Hit $100K Again?

    October 24, 2026

    ABA Bankers Criticize US OCC’s GENIUS Act Rule Update

    October 24, 2026
  • Web 3
    1. Gaming
    2. View All

    Top 12 NFT games every player should know about in August 2026

    September 22, 2026

    GameShame Studios founder details Raijin Protocol’s roadmap in NeoPod’s sixth AMA

    September 22, 2026

    Proof of Play to shut down after blockchain gaming thesis falls short

    September 22, 2026

    How BC.GAME is turning players into stakeholders

    September 22, 2026

    OpenStocks’ BNB Chain Tokens Offer Price Exposure, Not Private Shares

    October 24, 2026

    New OCC stablecoin rule resets redemptions, and banks face big shifts

    October 24, 2026

    When Will BTC Hit $100K Again?

    October 24, 2026

    ABA Bankers Criticize US OCC’s GENIUS Act Rule Update

    October 24, 2026
  • Legal
    1. Legal and Regulatory
    2. Adoption
    3. View All

    New OCC stablecoin rule resets redemptions, and banks face big shifts

    October 24, 2026

    ABA Bankers Criticize US OCC’s GENIUS Act Rule Update

    October 24, 2026

    Treasury Secretary Bessent likens GENIUS Act to Lincoln-era banking reform

    October 24, 2026

    Polymarket US Sues Ohio to Block Sports-Contract Crackdown

    October 23, 2026

    Germany’s main savings bank network launches Bitcoin trading

    October 21, 2026

    Two firms control corporate Bitcoin buys, even as business adoption broadens

    October 16, 2026

    AI agents keep coming back for crypto as x402 wallet refill rate surges to 89%

    October 15, 2026

    Interactive Brokers moves into Ethereum’s $110 billion staking market as institutional demand accelerates

    October 14, 2026

    OpenStocks’ BNB Chain Tokens Offer Price Exposure, Not Private Shares

    October 24, 2026

    New OCC stablecoin rule resets redemptions, and banks face big shifts

    October 24, 2026

    When Will BTC Hit $100K Again?

    October 24, 2026

    ABA Bankers Criticize US OCC’s GENIUS Act Rule Update

    October 24, 2026
  • Analysis

    Bitcoin ETFs shed $635 million as BTC tests their holdings’ estimated $81,500 cost basis

    October 24, 2026

    Can QNT Rebound Toward $373?

    October 23, 2026

    Can Rising Social Dominance Push PEPE Coin Higher?

    October 23, 2026

    Fake election polls expose a Kalshi loophole that could leave traders paying for fraud

    October 23, 2026

    Evernorth XRP Holdings to Target Higher XRP Per Share, CEO Says

    October 23, 2026
  • Learn
    1. Education
    2. Wallets and Exchanges
    3. View All

    What Is Robinhood Chain? The Ethereum Layer-2 Network for Tokenized Stocks

    July 12, 2026

    What Is BChat? The Decentralized Messaging App Built for Privacy

    June 2, 2026

    What Is an AI Prompt Injection Attack? The Hidden Threat Hijacking Your Chatbots

    May 31, 2026

    What Is AI Jailbreaking? A Beginner’s Guide to the Cat-and-Mouse Game Behind Every Chatbot

    May 17, 2026

    Coinbase Ireland’s cash safeguards fell €5 million short before 2024 fix

    October 23, 2026

    SideSwap reopens Bitcoin swaps while Liquid reserves stay locked

    October 22, 2026

    Binance bStocks collateral pricing moves to 24/7

    October 21, 2026

    Binance Pool shuts on November 10, with record access ending two weeks later

    October 18, 2026

    OpenStocks’ BNB Chain Tokens Offer Price Exposure, Not Private Shares

    October 24, 2026

    New OCC stablecoin rule resets redemptions, and banks face big shifts

    October 24, 2026

    When Will BTC Hit $100K Again?

    October 24, 2026

    ABA Bankers Criticize US OCC’s GENIUS Act Rule Update

    October 24, 2026
  • Tools
    • Market Overview
    • Exchange Tool
Free.cc (Free Cryptocurrency)Free.cc (Free Cryptocurrency)
Home»Legal and Regulatory»The government should promote innovation, not punish it
Legal and Regulatory

The government should promote innovation, not punish it

May 5, 2026No Comments6 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email

From 1974-1986, the Golden State Killer committed 13 known murders, upwards of 67 sexual assaults and 120 burglaries in 11 different jurisdictions in California, but then he suddenly stopped. He simply disappeared, and his identity remained a secret for over 30 years, until we finally caught him using a new innovative technology. Utilizing Investigative Genetic Genealogy (IGG), which combines forensic DNA analysis and genealogical research, we cracked the case, and I led the prosecution team that brought the Golden State Killer to justice. Since we first used IGG to solve this case, law enforcement around the world has solved over a thousand cold cases using this innovative technology. But what would have happened if lawmakers suddenly overregulated, or worse yet, banned the use of IGG? We would see countless children, women and grieving families denied their due measure of justice.

We should promote innovation, not punish it. In areas such as cryptocurrency, ambiguous rules and enforcement lead to confusion and stifle growth, which drives industries underground and offshore. This creates an environment where real “bad actors” exploit the law and target the vulnerable – and get away with it.

As the District Attorney of Sacramento, I have spent more than 25 years holding people accountable. I prosecuted gang members, charged hate crime offenders and went after drug traffickers. I have also prosecuted fraud, financial crimes, corruption and high-tech crimes at the highest levels. As someone who has authored and helped pass legislation, I am mindful that both prosecutors and the public need clarity about the laws that govern them. I know what real crime looks like, and I know the difference between a genuine criminal and an industry caught in the crosshairs of a law that was never meant for them.

See also  Tax on Bitcoin Gains? Dutch Government to Introduce Capital Gains Tax From 2028

That distinction matters now more than ever, as federal prosecutors have been weaponizing a statute against software developers who have never touched a customer’s funds, never operated a business in the traditional sense, and never harbored criminal intent. As someone who has devoted his career to justice, I am here to say that is not justice, that is overreach.

Congress enacted 18 U.S.C. Section 1960 to target money-transmitting businesses, such as storefronts, wire services, and exchange houses that handle other people’s money and skirt the licensing requirements designed to prevent money laundering. It was designed as the enforcement mechanism for licensing requirements under the Bank Secrecy Act, aimed squarely at traditional money services businesses. It was a sensible tool for a sensible purpose. What it was never meant to do is criminalize the writing of software.

Yet that is precisely what has happened. Federal prosecutors have stretched Section 1960 to reach developers of noncustodial, peer-to-peer blockchain technology. These are people who built open-source tools that automate transactions between willing parties, but who never held a single dollar of user funds, never had “customers” in any real sense of the word, and never had any ability to intercept or redirect assets. Neither the developers nor the software itself controls other people’s funds or transfers funds on their behalf. Charging them under a statute built for traditional financial intermediaries is a mistake, because it is misinformed and misdirected. As prosecutors, justice requires that we charge people with what they actually did, under laws designed to cover it.

The “regulation-by-prosecution” approach to crypto development fails that test badly. This approach chills open-source innovation, pushing many U.S. developers offshore. This unfairly saddles some with a criminal conviction and erodes American technological leadership in an area of consequential financial innovation. The U.S. share of open-source developers fell from 25% in 2021 to 18% in 2025, driven by a lack of clear rules for software development. Every developer we chase overseas is a developer who now builds infrastructure beyond the reach of U.S. oversight and beyond the reach of U.S. law enforcement when something does go wrong.

See also  US Government Transfers $9,290,000 in Ethereum From FTX Seizure to Coinbase Prime

That is not a win for public safety; that is a self-inflicted wound.

The good news is that some of this is beginning to change. In April of 2025, the United States Department of Justice (DOJ) issued a memorandum entitled “Ending

Regulation-by-Prosecution,” making clear that the DOJ will not enforce pure regulatory violations under Section 1960. Following the memo, the DOJ announced it would not approve new Section 1960 charges “where the evidence shows that software is truly decentralized and solely automates peer-to-peer transactions, and where a third party does not have custody and control over user assets.” That is what the law has always required.

But neither a memo nor a speech is a statute. Prosecutorial guidance can change with administrations and with U.S. Attorneys. The American innovation community and the public deserve clarity written into law. That is why the Promoting Innovation in Blockchain Development Act now before Congress deserves serious support. It restores the original intent of Section 1960: protecting the public from unlicensed financial intermediaries.

I am not naive about bad actors – there are genuine criminals who use digital assets to launder money and defraud victims. I have prosecuted them. I support robust enforcement against these criminals with the full weight of applicable law. The answer here is simply not to abandon the distinction between the tool and the criminal who wields it. We don’t charge email providers for wire fraud. We identify the actual bad actor, build the case and prosecute with evidence.

Section 1960 remains a powerful instrument against genuine money-transmitting criminals in the digital asset space. Custodial exchanges that knowingly process criminal proceeds, centralized mixers operated specifically to obscure illicit funds, platforms that flout FinCEN registration while holding customer assets – these are legitimate targets, and the law reaches them. It does not need to be stretched to reach a software developer in a Sacramento apartment who wrote a peer-to-peer protocol and never held a dime of someone else’s money.

See also  Bullish Crypto Bill May Pass Despite US Government Shutdown

I came to this country as a child refugee from Vietnam, with nothing but my family and the belief that America rewards hard work and respects the rule of law. The rule of law cuts both ways. It protects communities from violent crime, but it also protects innovators from overreach.

I run an office of nearly 500 employees that prosecutes nearly 30,000 cases a year. As the head of the second-largest District Attorney’s Office in Northern California, I have stood in courtrooms for 25 years and sworn to represent victims, the vulnerable and the voiceless. I believe that getting this distinction right should be a basic obligation of our Federal Government. Section 1960 is a good law that has been misused in relation to those involved in developing truly decentralized finance technology. Fix the application, target the actual criminals and let American innovation breathe. That is what justice demands, and that is what I will keep fighting for.

government innovation Promote punish
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

New OCC stablecoin rule resets redemptions, and banks face big shifts

October 24, 2026

ABA Bankers Criticize US OCC’s GENIUS Act Rule Update

October 24, 2026

Treasury Secretary Bessent likens GENIUS Act to Lincoln-era banking reform

October 24, 2026

Polymarket US Sues Ohio to Block Sports-Contract Crackdown

October 23, 2026
Add A Comment
Leave A Reply Cancel Reply

Top Posts

Policy Group Calls For Bitcoin Inclusion In Tax Exemptions

March 15, 2026

XRP Price Breaks $3, Analysts Say $5 Possible

October 2, 2025

Stay ahead with the latest crypto news, market updates, blockchain insights, and trends. Your trusted source for everything happening in the digital asset world.


We're social. Connect with us:

Facebook X (Twitter) Instagram Pinterest YouTube
Top Insights

OpenStocks’ BNB Chain Tokens Offer Price Exposure, Not Private Shares

October 24, 2026

New OCC stablecoin rule resets redemptions, and banks face big shifts

October 24, 2026

When Will BTC Hit $100K Again?

October 24, 2026
Get Informed

Subscribe to Updates

Get the latest creative news From Free.cc directly in your Inbox!

  • Contact
  • Privacy Policy
  • Terms & Conditions
  • Disclosure
© 2026 free.cc - All rights reserved.

Type above and press Enter to search. Press Esc to cancel.